UNITED STATES SECURITIES AND EXCHANGE COMMISSION ~~Washington, D. C. 20549~~

Washington, D. C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER ~~PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934~~

~~For~~PURSUANT ~~the~~TO ~~six~~RULE ~~months~~13a-16 ~~ended~~OR ~~June 30, 2003~~ 15d-16 OF

~~FAGE~~THE ~~DAIRY~~SECURITIES ~~INDUSTRY~~EXCHANGE ~~S.A. (Translation~~ACT ofOF ~~Registrant's name into English)~~ 1934

~~35,~~For the ~~Hermou~~nine ~~Street,~~months ~~144~~ended 52September ~~Metamorfossi~~30, ~~Athens, Greece (Address of principal executive office)~~ 2003

FAGE DAIRY INDUSTRY S.A.

(Translation of Registrant’s name into English)

35, Hermou Street, 144 52 Metamorfossi, Athens, Greece

(Address of principal executive office)

[Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.]

Form 20-F ý Form 40-F o

[Indicate by check mark if the Registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b))(1): o]

[Indicate by check mark if the Registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o]

[Indicate by check mark whether the Registrant by furnishing the information contained in the Form is also there by furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.]

Yes o No ý

This report (the "‘‘Quarterly Report"’’) sets forth certain information regarding the financial condition and results of operations of Fage Dairy Industry S.A., a Greek ~~société~~ société anonyme (the "‘‘Company"’’ or "“Fage"”), for the fiscal quarter ended ~~June~~ September 30, 2003. The Quarterly Report encloses a review, in English, of the Company'’s ~~unaudited~~ unaudited financial information and analysis for the ~~second~~third quarter as well as certain other information.

The following unaudited financial statements in the opinion of the management, reflect all necessary adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, the results of operations and cash flows for the periods presented.

For a description of accounting policies see Notes to financial statements in Fage'’s 2002 annual report (FORM 20-F).

iiII

FAGE DAIRY INDUSTRY S.A. ~~FORM 6-K INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS~~

		Page
PART I	FINANCIAL INFORMATION
ITEM 1	-FINANCIAL STATEMENTS
	a—Consolidated Balance Sheets as of December 31, 2002 and June 30, 2003	1-2
	b—Consolidated Statements of Operations for the six months ended June 30, 2002 and 2003	3
	c—Consolidated Statements of Operations for the three months ended June 30, 2002 and 2003	4
	d—Consolidated Statement of Shareholders' Equity for the six months ended June 30, 2003	5
	e—Consolidated Statements of Cash Flows for the six months ended June 30, 2002 and 2003	6
	f—Notes to Consolidated Financial Statements	7-15
ITEM 2	-MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	16-21
ITEM 3	-QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	21-22
ITEM 4	-CONTROLS AND PROCEDURES	22
PART II	OTHER INFORMATION
ITEM 1	Legal Proceedings	23
ITEM 2	Changes in Securities and use of proceeds	23
ITEM 3	Defaults upon Senior Securities	23
ITEM 4	Submission of Matters to a Vote of Security Holders	23
ITEM 5	Other Information	23
ITEM 6	Exhibits and Reports on Form 8-K	23
SIGNATURES		24

FORM 6-K

~~iii~~INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

		Page
PART I	FINANCIAL INFORMATION

ITEM 1	-FINANCIAL STATEMENTS

	a - Consolidated Balance Sheets as of December 31, 2002 and September 30, 2003	1-2

	b - Consolidated Statements of Operations for the nine months ended September 30, 2002 and 2003	3

	c - Consolidated Statements of Operations for the three months ended September 30, 2002 and 2003	4

	d - Consolidated Statement of Shareholders’ Equity for the nine months ended September 30, 2003	5

	e - Consolidated Statements of Cash Flows for the nine months ended September 30, 2002 and 2003	6

	f - Notes to Consolidated Financial Statements	7-14

ITEM 2	-MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	15-19

ITEM 3	-QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	19-20

ITEM 4	-CONTROLS AND PROCEDURES	20

PART II	OTHER INFORMATION

ITEM 1	Legal Proceedings	21

ITEM 2	Changes in Securities and use of proceeds	21

ITEM 3	Defaults upon Senior Securities	21

ITEM 4	Submission of Matters to a Vote of Security Holders	21

ITEM 5	Other Information	21

ITEM 6	Exhibits and Reports on Form 8-K	21

SIGNATURES		22

III

PART I

ITEM 1.a

FAGE DAIRY INDUSTRY S.A. AND ~~SUBSIDIARIES~~ ~~CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2002 AND JUNE 30, 2003 (Amounts in 000's of Euro and U.S. Dollars)~~ SUBSIDIARIES

					UNAUDITED
			December 31, 2002
					June 30, 2003
		Notes	EUR		EUR		U.S.$
ASSETS
Current Assets
Cash and cash equivalents			7,866		5,540		6,435
Marketable securities		4	3,116		3,164		3,675
Accounts receivable		5	80,463		92,505		107,454
Less: Allowance for doubtful accounts		5	(7,453	)	(7,602	)	(8,830	)
			73,010		84,903		98,624
Due from related companies		6	1,587		1,826		2,121
Inventories		7	23,482		31,962		37,127
	Total current assets		109,061		127,395		147,982
Investments and Other Assets
Investments in and advances to affiliates		8	2,433		2,335		2,712
Other non-current assets		9	1,653		1,090		1,266
			4,086		3,425		3,978
Property, Plant and Equipment		9
Cost			154,824		165,056		191,729
Less: Accumulated depreciation			(63,420	)	(67,695	)	(78,634	)
			91,404		97,361		113,095
Borrowing Costs		2
Cost			3,334		3,334		3,873
Less: Accumulated amortization			(2,453	)	(2,620	)	(3,043	)
			881		715		830
Goodwill, resulting from consolidated subsidiaries		10	9,383		9,383		10,900
TOTAL ASSETS			214,815		238,279		276,785

CONSOLIDATED BALANCE SHEETS

~~Exchange rate~~AS ~~used~~OF ~~for~~DECEMBER ~~the~~31, ~~convenience~~2002 ~~translation~~AND ~~of the June~~ SEPTEMBER 30, 2003~~, Euro amounts: U.S.$1.1616 to EUR 1.00~~

~~The~~(Amounts ~~accompanying~~in ~~notes~~000’s ~~are an integral part~~ of ~~these~~Euro ~~consolidated~~and ~~balance sheets~~U.S. Dollars)

				UNAUDITED
		December 31, 2002		September 30, 2003
	Notes	EUR		EUR		U.S.$
ASSETS
Current Assets
Cash and cash equivalents		7,866		6,181		7,201
Marketable securities	4	3,116		3,933		4,582

Accounts receivable	5	80,463		84,140		98,023
Less: Allowance for doubtful accounts	5	(7,453	)	(7,678	)	(8,945	)
		73,010		76,462		89,078

Due from related companies	6	1,587		2,013		2,345
Inventories	7	23,482		29,634		34,524

Total current assets		109,061		118,223		137,730

Investments and Other Assets
Investments in and advances to affiliates	8	2,433		2,456		2,861
Other non-current assets	9	1,653		1,119		1,304
		4,086		3,575		4,165

Property, Plant and Equipment	9
Cost		154,824		169,398		197,349
Less: Accumulated depreciation		(63,420	)	(69,916	)	(81,452	)
		91,404		99,482		115,897

Borrowing Costs	2
Cost		3,334		3,334		3,885
Less: Accumulated amortization		(2,453	)	(2,703	)	(3,149	)
		881		631		736

Goodwill	10	9,383		9,383		10,931

TOTAL ASSETS		214,815		231,294		269,459

Exchange rate used for the convenience translation of the September 30, 2003, Euro amounts: U.S.$ 1.165 to ~~PART~~EUR I 1.00

The ~~ITEM~~accompanying 1notes are an integral part of these consolidated balance sheets.a

~~FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS — Continued AS OF DECEMBER 31, 2002 AND JUNE 30, 2003 (Amounts in 000's of Euro and U.S. Dollars except per share data)~~ 1

					UNAUDITED
			December 31, 2002
					June 30, 2003
		Notes	EUR		EUR		U.S.$
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Trade accounts payable			48,211		49,985		58,063
Short-term borrowings		11	5,838		15,102		17,542
Due to related companies		6	7,850		14,982		17,403
Income taxes payable			6,512		6,490		7,539
Deferred income taxes			6,685		3,653		4,244
Other current liabilities		14	9,598		8,615		10,007
	Total current liabilities		84,694		98,827		114,798
Long-Term Liabilities
Long-term debt, net of current maturities		12, 13	87,407		80,434		93,432
Staff retirement indemnities			1,401		1,486		1,726
Other long-term liabilities			3,079		2,555		2,968
Deferred income taxes			9,616		17,505		20,333
			101,503		101,980		118,459
Minority interests			52		45		53
Contingencies		15
Shareholders' Equity
Share capital, nominal value EUR 2,94 each at December 31, 2002 and June 30, 2003, (9,610,400 shares authorised, issued and outstanding at December 31, 2002 and June 30, 2003, respectively)			28,254		28,254		32,820
Reversal of revaluation gains			(22,396	)	(22,396	)	(26,015	)
Retained earnings			23,078		31,872		37,022
Accumulated other comprehensive income			(370	)	(303	)	(352	)
			28,566		37,427		43,475
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			214,815		238,279		276,785

FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES

~~Exchange rate~~CONSOLIDATED ~~used~~BALANCE ~~for the convenience translation of the June 30, 2003, Euro amounts: U.S.$1.1616 to EUR 1.00~~ SHEETS

~~The~~AS ~~accompanying~~OF ~~notes~~DECEMBER ~~are~~31, an2002 ~~integral~~AND ~~part~~SEPTEMBER of30, ~~these consolidated balance sheets.~~2003

2(Amounts in 000’s of Euro and U.S. Dollars except per share data )

PART I

				UNAUDITED
		December 31, 2002		September 30, 2003
	Notes	EUR		EUR		U.S.$
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Trade accounts payable		48,211		41,533		48,386
Short-term borrowings	11	5,838		21,606		25,171
Due to related companies	6	7,850		9,519		11,090
Income taxes payable		6,512		3,145		3,664
Deferred income taxes		6,685		4,054		4,723
Other current liabilities	14	9,598		6,486		7,556

Total current liabilities		84,694		86,343		100,590

Long-Term Liabilities
Long-term debt, net of current maturities	12, 13	87,407		78,959		91,987
Staff retirement indemnities		1,401		1,517		1,767
Other long-term liabilities		3,079		2,555		2,977
Deferred income taxes		9,616		18,900		22,019
		101,503		101,931		118,750

Minority interests		52		29		34

Contingencies	15

Shareholders’ Equity
Share capital, nominal value EUR 2,94 each at December 31, 2002 and September 30, 2003, (9,610,400 shares authorised, issued and outstanding at December 31, 2002 and September 30, 2003, respectively)		28,254		28,254		32,916
Reversal of revaluation gains		(22,396	)	(22,396	)	(26,091	)
Retained earnings		23,078		36,666		42,716
Accumulated other comprehensive income		(370	)	467		544
		28,566		42,991		50,085
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		214,815		231,294		269,459

Exchange rate used for the convenience translation of the September 30, 2003, Euro ~~ITEM~~amounts: U.S.$ 1.b 165 to EUR 1.00

The accompanying ~~FAGE~~notes ~~DAIRY~~are ~~INDUSTRY~~an ~~S.A.~~integral ~~AND~~part ~~SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2003 (Amounts in 000's~~ of ~~Euro~~these consolidated ~~and~~balance Usheets.~~S. Dollars, except share and per share data) (UNAUDITED)~~

	2002			2003
	Notes	EUR		EUR		U.S.$
Net sales		159,592		173,175		201,160
Cost of sales		(97,976	)	(106,934	)	(124,215	)
Gross profit		61,616		66,241		76,945
Selling, general and administrative expenses		(45,841	)	(54,661	)	(63,494	)
Income from operations		15,775		11,580		13,451
Interest expense	2, 11, 12, 13	(5,360	)	(4,091	)	(4,752	)
Foreign exchange gains (losses), net		12,170		7,997		9,289
Losses on equity investee		(272	)	(98	)	(114	)
Other income (expenses), net		843		479		557
Income before income taxes and minority interests		23,156		15,867		18,431
Provision for income taxes		(9,797	)	(7,080	)	(8,225	)
Income before minority interests		13,359		8,787		10,206
Minority interests		(54	)	7		8
NET INCOME		13,305		8,794		10,215
Income per share, basic and diluted		1.38		0.92		1.06
Weighted average number of shares, basic and diluted		9,610,400		9,610,400		9,610,400

~~Exchange~~ITEM ~~rate used for the convenience translation of the June 30, 2003, Euro amounts: U.S.$~~1.~~1616 to EUR 1.00~~ b

~~The~~FAGE ~~accompanying~~DAIRY ~~notes~~INDUSTRY ~~are~~S.A. anAND ~~integral part of these consolidated statements.~~SUBSIDIARIES

3CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE ~~PART~~NINE I MONTHS ENDED SEPTEMBER 30, 2002 AND 2003

(Amounts ~~ITEM~~in 1000’s of Euro and U.cS. Dollars, except share and per share data)

~~FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2003~~ (~~Amounts in 000's of Euro and U.S. Dollars, except per share data) (~~UNAUDITED)

	~~2002~~	2002		2003
	Notes	EUR		EUR		U.S.$
Net sales		87251,~~663~~498		93266,~~345~~699		~~108~~310,~~430~~704
Cost of sales		(55155,~~345~~788	)	(58164,~~622~~983	)	(68192,~~096~~205	)
Gross profit		3295,~~318~~710		34101,~~723~~716		40118,~~334~~499
Selling, general and administrative expenses		(2669,~~181~~133	)	(3182,~~526~~476	)	(3696,~~621~~085	)
Income from operations		626,~~137~~577		319,~~197~~240		322,~~713~~414
Interest expense	2, 11, 12, 13	(27,~~464~~871	)	(26,~~050~~141	)	(27,~~381~~154	)
Foreign exchange gains (losses), net		1312,~~362~~028		48,~~725~~186		59,~~489~~537
Gains (losses) on equity investee		(138	)	63		73
Losses on equity investee		(388	)	(153	)	(178	)
Other income (expenses), net		~~465~~613		~~303~~222		~~352~~258
Income before income taxes and minority interests		1730,~~362~~959		621,~~238~~354		724,~~246~~877
Provision for income taxes		(710,~~832~~616	)	(37,~~696~~789	)	(49,~~294~~074	)
Income before minority interests		920,~~530~~343		213,~~542~~565		215,~~952~~803
Minority interests		(4830	)	1123		1327
NET INCOME		920,~~482~~313		213,~~553~~588		215,~~965~~830
Income per share, basic and diluted		02.9911		01.2741		01.3165
Weighted average number of shares, basic and diluted		9,610,400		9,610,400		9,610,400

Exchange rate used for the convenience translation of the ~~June~~September 30, 2003, Euro amounts: U.S.$ 1.~~1616~~165 to EUR 1.00

The accompanying notes are an integral part of these consolidated statements.

ITEM ~~PART I~~ 1.c

FAGE ~~ITEM~~DAIRY 1INDUSTRY S.dA. AND SUBSIDIARIES

~~FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES~~ CONSOLIDATED ~~STATEMENT~~STATEMENTS OF ~~SHAREHOLDERS' EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2003 (Amounts in 000's of Euro and U.S. Dollars) (UNAUDITED)~~ OPERATIONS

					RETAINED EARNINGS (DEFICIT)
	Comprehensive Income	Share Capital	Reversal of Revaluation Gains		Legal, Tax Free and Extraordinary Reserves	Accumulated Deficit		Total	Accumulated Other Comprehensive Income		Grand Total
Balance, December 31, 2002		28,254	(22,396	)	23,931	(853	)	23,078	(370	)	28,566
Net income for the period	8,794	0	0		0	8,794		8,794	0		8,794
Foreign currencies translation	19	0	0		0	0		0	19		19
Unrealized losses on marketable securities	48	0	0		0	0		0	48		48
Comprehensive income	8,861
Balance, June 30, 2003		28,254	(22,396	)	23,931	7,941		31,872	(303	)	37,427

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2003

~~The~~(Amounts in ~~accompanying~~000’s ~~notes~~of ~~are~~Euro anand ~~integral~~U.S. ~~part~~Dollars, ofexcept ~~this~~per ~~consolidated~~share ~~statement.~~data)

5(UNAUDITED)

PART I ITEM 1.e

		2002		2003
	Notes	EUR		EUR		U.S.$

Net sales		91,906		93,524		108,955
Cost of sales		(57,812	)	(58,049	)	(67,627	)

Gross profit		34,094		35,475		41,328

Selling, general and administrative expenses		(23,559	)	(28,468	)	(33,165	)

Income from operations		10,535		7,007		8,163

Interest expense	2, 11, 12, 13	(2,511	)	(2,050	)	(2,388	)
Foreign exchange gains (losses), net		(142	)	189		220
Gains (losses) on equity investee		(116	)	(55	)	(64	)
Other income (expenses), net		37		396		461

Income before income taxes and minority interests		7,803		5,487		6,392
Provision for income taxes		(819	)	(709	)	(826	)

Income before minority interests		6,984		4,778		5,566

Minority interests		24		16		19

NET INCOME		7,008		4,794		5,585

Income per share, basic and diluted		0.73		0.50		0.58

Weighted average number of shares, basic and diluted		9,610,400		9,610,400		9,610,400

Exchange ~~FAGE~~rate ~~DAIRY~~used ~~INDUSTRY~~for the ~~S.A.~~convenience ~~AND~~translation ~~SUBSIDIARIES CONSOLIDATED~~of ~~STATEMENTS~~the OFSeptember ~~CASH FLOWS FOR THE SIX MONTHS ENDED JUNE~~ 30, ~~2002 AND~~ 2003 ~~(Amounts~~, ~~in 000's of~~ Euro ~~and~~amounts: U.S. ~~Dollars)~~$ 1.165 ~~(UNAUDITED)~~ to EUR 1.00

					2003
			2002 EUR
					EUR		U.S.$
Cash Flows from Operating Activities:
Net income			13,305		8,794		10,215
Adjustments to reconcile to net cash provided by operating activities:
	Depreciation and amortization		4,086		4,631		5,379
	Deferred income taxes		5,561		4,857		5,642
	Provision for personnel retirement cost		144		158		184
	Provision for doubtful accounts receivable		275		150		174
	Minority interests		54		(7	)	(8	)
	Gain from sale of property, plant & equipment		(193	)	(66	)	(77	)
	Unrealised foreign exchange (gains) losses		(12,454	)	(8,281	)	(9,619	)
	Loss on investments		272		98		114
	(Increase) Decrease in:
		Accounts receivable	(8,607	)	(12,042	)	(13,988	)
		Due from related companies	20		(239	)	(278	)
		Inventories	(5,026	)	(8,480	)	(9,850	)
	Increase (Decrease) in:
		Trade accounts payable	1,362		1,774		2,061
		Due to related companies	5,837		7,132		8,285
		Income taxes payable	3,873		(22	)	(26	)
		Other current liabilities	(364	)	(836	)	(971	)
		Payment of staff retirement indemnities	(28	)	(73	)	(85	)
	(Increase) decrease in other non-current assets		(262	)	563		654
Net Cash from (used in) Operating Activities			7,855		(2,415	)	(2,805	)
Cash Flows from Investing Activities:
	Capital expenditure for property, plant & equipment		(6,201	)	(10,520	)	(12,220	)
	Proceeds from sale of fixed assets		1,769		164		191
	Net change in restricted cash		(196	)	0		0
	Purchase of marketable securities		(14	)	0		0
Net Cash used in Investing Activities			(4,642	)	(10,356	)	(12,029	)
Cash Flows from Financing Activities:
	Net change in short-term borrowings		5,720		10,467		12,158
	Repayment of long-term debt		(615	)	0		0
	Increase of share capital		37		0		0
Net Cash from Financing Activities			5,142		10,467		12,158
Effect of exchange rates changes on cash			18		(22	)	(26	)
Net increase (decrease) in cash and cash equivalents			8,373		(2,326	)	(2,702	)
Cash and cash equivalents at beginning of period			2,831		7,866		9,137
Cash and cash equivalents at end of period			11,204		5,540		6,435
Supplemental disclosures of Cash Flow Information:
	Cash paid for:
		—interest, net of amounts capitalized	5,485		3,995		4,640
		—income taxes	361		2,245		2,608

The accompanying notes are an integral part of these statements.

~~Exchange rate used for the convenience translation of the June 30, 2003, Euro amounts: U.S.$1.1616 to EUR 1.00~~ 4

~~The~~ITEM ~~accompanying notes are an integral part of these consolidated statements~~1.d

6FAGE DAIRY INDUSTRY S.A. AND SUBSIDIARIES

CONSOLIDATED STATEMENT ~~PART~~OF ~~I ITEM~~SHAREHOLDERS’ ~~1.f~~EQUITY

~~FAGE~~FOR ~~DAIRY~~THE ~~INDUSTRY~~NINE ~~S.A.~~MONTHS ~~AND~~ENDED ~~SUBSIDIARIES NOTES~~SEPTEMBER ~~TO CONSOLIDATED FINANCIAL STATEMENTS JUNE~~ 30, 2003 ~~(Amounts in all tables and notes are presented in thousands of Euro unless otherwise stated) (UNAUDITED)~~

~~BUSINESS~~(Amounts ~~INFORMATION:~~ in 000’s of Euro and U.S. Dollars)

~~Fage Dairy Industry S.A., a corporation organized under the laws of the Hellenic Republic~~ (~~also known as Greece~~UNAUDITED), is the successor to a business founded in Athens in 1926 by the family of Mr. Athanassios Filippou, the father of the current shareholders, Messrs. Ioannis and Kyriakos Filippou. References to the "Company" or "Fage" include, unless the context indicates otherwise, Fage Dairy Industry S.A. and its consolidated subsidiaries.

Through its extensive distribution network, the Company sells a wide range of branded dairy products, including yogurt and dairy desserts, milk and milk cream and cheese. All operating activities are conducted in Greece and the Company's products are sold under the FAGE® trademark.

					RETAINED EARNINGS (DEFICIT)
	Comprehensive Income	Share Capital	Reversal of Revaluation Gains		Legal, Tax Free and Extraordinary Reserves	Accumulated Deficit		Total	Accumulated Other Comprehensive Income		Grand Total

Balance, December 31, 2002		28,254	(22,396	)	23,931	(853	)	23,078	(370	)	28,566

Net income for the period	13,588	0	0		0	13,588		13,588	0		13,588

Foreign currencies translation	20	0	0		0	0		0	20		20

Unrealized gains on marketable securities	817	0	0		0	0		0	817		817

Comprehensive income	14,425

Balance, September 30, 2003		28,254	(22,396	)	23,931	12,735		36,666	467		42,991

~~No single~~The ~~customer~~accompanying ~~accounted~~notes ~~for~~are ~~more~~an ~~than~~integral ~~10%~~part of ~~the~~ this consolidated ~~net sales for the three and six months ended June 30, 2002 and 2003~~statement.

The accompanying unaudited financial statements, in the opinion of the management, reflect all necessary adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, the results of operations and cash flows for the periods presented. Certain reclassifications have been made to June 30, 2002 consolidated financial statements to conform to the presentation in June 30, 2003 consolidated financial statements. 5

~~For a~~ITEM ~~full description of accounting policies see notes to financial statements for the year ended December 31, 2002~~1. e

~~1. RECENTLY~~FAGE ~~ISSUED~~DAIRY ~~ACCOUNTING~~INDUSTRY ~~STANDARDS:~~ S.A. AND SUBSIDIARIES

~~Recent~~CONSOLIDATED ~~Accounting~~STATEMENTS ~~Pronouncements: Recent~~OF ~~Statements~~CASH ~~of Financial Accounting Standards issued by the Financial Accounting Standards Board ("FASB") are summarized as follows:~~ FLOWS

7FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2003

~~FASB No. 13,~~(Amounts ~~which~~in ~~requires~~000’s ~~that certain capital lease modifications be treated as a sale-leaseback transaction. The Company adopted SFAS No. 145 with respect to the presentation~~ of ~~gains~~Euro orand ~~losses from continuing operations rather than as an extraordinary item~~U. ~~The adoption of SFAS No~~S. ~~145~~ ~~had no effect on the Company's consolidated financial statements.~~ Dollars)

~~2. DEFERRED CHARGES:~~ (UNAUDITED)

The expenses incurred in connection with the issuance and distribution of the Senior Notes issued on February 11, 1997, (see Note 13), including underwriting commissions, were capitalized as deferred charges and are being amortized on a straight-line basis over the term of the Notes. Amortization for the six months ended June 30, 2002 and 2003 totaled € 167 for each period and are included in interest expense in the accompanying consolidated statements of operations.

	2002		2003
	EUR		EUR		U.S.$
Cash Flows from Operating Activities:
Net income	20,313		13,588		15,830
Adjustments to reconcile to net cash provided by operating activities:
Depreciation and amortization	5,991		7,096		8,267
Deferred income taxes	5,654		6,654		7,752
Provision for personnel retirement cost	216		237		276
Provision for doubtful accounts receivable	482		225		262
Minority interests	30		(23	)	(27	)
Gain from sale of property, plant & equipment	(111	)	(73	)	(85	)
Unrealised foreign exchange (gains) losses	(10,549	)	(8,602	)	(10,021	)
Loss on investments	388		153		178

(Increase) Decrease in:
Accounts receivable	(8,401	)	(3,501	)	(4,078	)
Due from related companies	(65	)	(426	)	(496	)
Inventories	(4,587	)	(6,152	)	(7,167	)
Increase (Decrease) in:
Trade accounts payable	6,488		(6,678	)	(7,780	)
Due to related companies	3,408		1,669		1,944
Income taxes payable	3,667		(3,367	)	(3,922	)
Other current liabilities	(2,712	)	(3,107	)	(3,620	)
Payment of staff retirement indemnities	(42	)	(121	)	(141	)
(Increase) decrease in other non-current assets	(380	)	534		622
Increase (decrease) in other long-term liabilities	519		(524	)	(610	)
Net Cash from (used in) Operating Activities	20,309		(2,418	)	(2,817	)

Cash Flows from Investing Activities:
Capital expenditure for property, plant & equipment	(10,048	)	(15,445	)	(17,994	)
Proceeds from sale of fixed assets	1,942		593		691
Investments in and advances to affiliates	0		(176	)	(205	)
Net change in restricted cash	15,298		0		0
Purchase of marketable securities	(14	)	0		0
Net Cash from (used in) Investing Activities	7,178		(15,028	)	(17,508	)

Cash Flows from Financing Activities:
Net change in short-term borrowings	(19,028	)	15,767		18,369
Repayment of long-term debt	(1,242	)	0		0
Increase of share capital	37		0		0
Net Cash from (used in) Financing Activities	(20,233	)	15,767		18,369

Effect of exchange rates changes on cash	(52	)	(6	)	(7	)

Net increase (decrease) in cash and cash equivalents	7,202		(1,685	)	(1,963	)
Cash and cash equivalents at beginning of period	2,831		7,866		9,164

Cash and cash equivalents at end of period	10,033		6,181		7,201

Supplemental disclosures of Cash Flow Information :
Cash paid for :
- interest, net of amounts capitalized	10,071		7,755		9,034
- income taxes	1,293		4,501		5,244

~~3. TRANSLATIONS~~Exchange rate OFused ~~EURO~~for ~~AMOUNTS~~the ~~INTO~~convenience translation of the September 30, 2003, Euro amounts: U.S.$ ~~DOLLARS:~~ 1.165 to EUR 1.00

The ~~Company's~~accompanying ~~measurement~~notes ~~and reporting currency,effective January 1, 2002, is the Euro. The translations of the Euro amounts into U.S. Dollars at the rate of US $1.1616 to € 1.00~~ are included solely for the convenience of the reader. This U.S. $ convenience exchange rate is computed based on the noon buying rate in New York City for cable transfers in Euro, as certified for customs purposes by the Federal Reserve Bank of New York on June 30, 2003. The convenience translation should not be construed as representations that the Euro amounts have been, could have been, or could in the future be, converted into U.S. Dollars at this or any other rate of exchange. Included in foreign exchange gains (losses), net, for the six months ended June 30, 2002 and 2003 is an ~~amount~~integral ofpart ~~€ 10,537 and € 7,079, respectively, relating to unrealized foreign exchange gains (losses)~~ of ~~the Senior Notes referred to in Note 13. Included in foreign exchange gains (losses), net, for the three months ended June 30, 2002 and 2003~~these isconsolidated ~~an amount of € 11,582 and € 3,856, respectively, relating to unrealized foreign exchange gains (losses) of the Senior Notes referred to in Note 13~~statements.

~~4. MARKETABLE~~ITEM ~~SECURITIES:~~ 1.f

~~Equity~~FAGE ~~securities~~DAIRY atINDUSTRY ~~December 31, 2002 and June 30, 2003, include: (a) € 1,150 and € 1,143 respectively, representing the market value, as of those dates, of 139,831 preferred and 212,849 common shares, of Vis~~ S.A. ~~(a related company) representing~~AND approximately 7.1% of Vis S.A.'s authorized, issued and outstanding shares as of those dates, and (b) € 1,966 and € 2,021 representing the market value, as of those dates, of 420,000 shares of Hellenic Biscuit Company (a related company) representing approximately 0.9%, of Hellenic Biscuit Company's authorized, issued and outstanding shares. SUBSIDIARIES

~~The above-mentioned~~NOTES ~~investments~~TO ~~have~~CONSOLIDATED ~~been~~FINANCIAL classified as available for sale and are carried at their fair market value with the difference in the market values reflected in shareholders' equity. At December 31, 2002 and June 30, 2003, the cost of these investments in equity securities was € 3,521. STATEMENTS

~~There were~~SEPTEMBER ~~no sales of equity securities for the six months ended June~~ 30, ~~2002 and~~ 2003.

~~The change~~(Amounts in ~~net~~all ~~unrealized~~tables ~~holding~~and ~~gain~~notes ~~(loss)~~are onpresented ~~available~~in ~~for~~thousands of ~~sale~~Euro ~~equity~~unless ~~securities~~otherwise ~~for the six months ended June 30, 2002 and 2003 totaled €(336~~stated) ~~and € 48, respectively.~~

~~5. ACCOUNTS RECEIVABLE:~~ (UNAUDITED)

~~Accounts~~BUSINESS ~~receivable are analyzed as follows~~INFORMATION:

		December 31, 2002		June 30, 2003
				(Unaudited)
Trade:
	-In Euro	64,882		74,447
	-In foreign currencies	3,197		4,705
		68,079		79,152
	-Less: allowance for doubtful accounts	(3,292	)	(3,405	)
		64,787		75,747
Other:
	-Value added tax	4,486		5,023
	-Prepaid taxes, other than income taxes	1,022		973
	-Prepaid expenses	590		1,003
	-Custom brokers	181		241
	-Advances to suppliers	4,855		5,064
	-Various debtors	1,250		1,049
		12,384		13,353
	-Less: allowance for doubtful accounts	(4,161	)	(4,197	)
		8,223		9,156
		73,010		84,903

Fage Dairy Industry S.A., a corporation organized under the laws of the Hellenic Republic (also known as Greece), is the successor to a business founded in Athens in 1926 by the family of Mr. Athanassios Filippou, the father of the current shareholders, Messrs. Ioannis and Kyriakos Filippou. References to the “Company” or “Fage” include, unless the context indicates otherwise, Fage Dairy Industry S.A. and its consolidated subsidiaries.

~~The provision~~Through ~~for~~its ~~doubtful~~extensive ~~accounts~~distribution ~~for~~network, the Company ~~six~~sells ~~months~~a ~~ended~~wide ~~June 30~~range of branded dairy products, ~~2002~~including yogurt and dairy ~~2003~~desserts, ~~totaled~~milk ~~€ 275~~and milk cream and ~~€ 150, respectively~~cheese. All operating activities are conducted in Greece and the Company’s products are sold under the FAGEâ trademark.

~~The~~No single customer ~~fair~~accounted ~~value~~for more than 10% of ~~accounts~~the ~~receivable~~consolidated ~~approximates~~net sales for the ~~above~~three ~~recorded~~and nine ~~values.~~months ended September 30, 2002 and 2003.

~~There~~The accompanying ~~was~~unaudited nofinancial ~~write-off~~statements, in the opinion of ~~accounts~~the ~~receivable~~management, orreflect ~~other~~all necessary ~~debts~~adjustments ~~during~~(which include only normal recurring adjustments) necessary for a fair presentation of the ~~first~~financial ~~six~~position, ~~months~~the results of operations and cash flows for the periods presented. Certain reclassifications have been made to September 30, 2002 consolidated ~~and~~financial statements to conform to the presentation in September 30, 2003. consolidated financial statements.

9For a full description of accounting policies see notes to financial statements for the year ended December 31, 2002.

~~It is the Company's policy to attach liens against the property of most of its delinquent customers~~1. ~~Because of the prolonged and complex legal procedures in Greece, it is not unusual~~ RECENTLY ~~for~~ISSUED ~~the~~ACCOUNTING ~~collection process to take three to five years before a case is finalized.~~ STANDARDS:

~~6. DUE~~Recent ~~FROM~~Accounting Pronouncements: Recent Statements of Financial Accounting Standards issued by the Financial Accounting Standards Board (TO“FASB”) ~~RELATED~~are ~~COMPANIES~~summarized as follows:

~~Fage~~(i) SFAS ~~purchases~~No. ~~goods~~143, ~~and~~“Accounting ~~services~~for ~~from~~Asset Retirement Obligations”, relates to financial accounting and ~~makes~~reporting requirements ~~sales~~associated ofwith ~~goods~~the toretirement ~~certain~~of ~~related~~tangible ~~companies~~long-lived inassets and the ~~ordinary~~associated ~~course~~asset ofretirement ~~business~~costs. The ~~Such~~statement ~~related~~is ~~companies~~effective ~~consist~~for offinancial statements issued for fiscal ~~affiliates~~years orbeginning ~~companies~~after June 15, ~~which~~2002. The Company has not determined the impact, if any, that the adoption of this statement will have ~~common~~on ~~ownership~~the ~~and/or~~Company’s ~~management~~results ~~with~~of ~~Fage.~~operations or financial position.

~~Account~~ (ii) SFAS No. 145, In April 2002, the FASB ~~balances~~issued SFAS No. 145, “Rescission of FASB Statements No. 4, 44, Amendment of FASB Statement No. 13, and Technical Corrections”, which is effective for fiscal years beginning after May 15, 2002. This statement requires most gains and losses from extinguishment of debt to be presented as a gain or loss from continuing operations rather than as an extraordinary item. Accounting Principles Board (“APB”) Opinion No. 30, “Reporting the Results of Operations, Reporting Effects of Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring Events and Transactions” will now be used to classify those gains and losses. This Statement also amends FASB No. 13, which requires that certain capital lease modifications be treated as a sale-leaseback transaction. The Company adopted SFAS No. 145 with ~~related~~respect ~~companies~~to ~~are~~the presentation of gains or losses from continuing operations rather than as ~~follows:~~an extraordinary item. The adoption of SFAS No. 145 had no effect on the Company’s consolidated financial statements.

		December 31, 2002	June 30, 2003
			(Unaudited)
Due from:
	-Ioannis Nikolou ULP	1,214	1,455
	-Sideris & Co	367	367
	-Vis S.A.	6	4
		1,587	1,826
Due to:
	-Aspect S.A.	3,669	6,973
	-Mornos S.A.	2,263	3,657
	-Iofil S.A.	729	1,631
	-Palace S.A.	433	372
	-Vihep S.A.	329	304
	-Evga S.A.	168	1,715
	-Bizios S.A.	259	2,330
		7,850	14,982

(iii) SFAS No. 146, In July 2002, the FASB issued SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities”. SFAS No. 146 replaces EITF Issue No. 94-3, “Liability Recognition for Certain Employee Termination Benefits and Other Costs to exit an Activity (including Certain Costs Incurred in a Restructuring”, and changes the timing of recognition for certain exit costs associated with restructuring activities. Under SFAS No. 146 certain exit costs would be recognized over the period in which the restructuring activities occur. Currently, exit costs are recognized when the Company

~~Transactions with related companies for the six months ended June 30, 2002 and 2003 are analyzed as follows:~~ 7

	Purchases from related parties		Sales to related parties
	June 30, 2002	June 30, 2003	June 30, 2002	June 30, 2003
	(Unaudited)
Inventories, materials and supplies	17,932	20,743	1,924	2,090
Advertising and media	7,472	10,043	—	—
Commercial services	1,325	3,581	—	—
	26,729	34,367	1,924	2,090

commits to a restructuring plan. SFAS No. 146 is applied prospectively to exit or disposal activities initiated after December 31, 2002, though early adoption is allowed. During 2003, the Company adopted SFAS No. 146 for exit or disposal activities. The adoption of SFAS No. 146 had no effect on the Company’s consolidated financial statements.

~~Purchases~~(iv) FASB Interpretation ofNo. ~~inventories,~~45 ~~materials~~(“FIN ~~and~~No ~~supplies~~45”), ~~from~~In ~~related~~November ~~parties~~2002, ~~represented~~the ~~approximately~~FASB ~~20%~~issued FIN No. 45, “Guarantor’s Accounting and ~~21%~~Disclosure Requirements for Guarantees, Including Indirect Guarantees of ~~Fage's~~Indebtedness ~~total~~of ~~purchases~~Other “. FIN No. 45 requires that upon issuance of ~~inventories~~a guarantee, ~~materials~~the guarantor ~~and~~must ~~supplies~~recognize a liability for the ~~six~~fair value of the obligation it ~~months~~assumes ~~ended~~under ~~June 30~~the guarantee. The disclosure provisions of FIN No. 45 are effective for financial statements of annual periods that end after December 15, 2002. The provisions for initial recognition and ~~2003~~measurement are affective on a prospective basis for guarantees that are issued or modified after December 31, ~~respectively~~2002. The adoption of FIN No. 45 is not expected to have a significant effect on the Company’s consolidated financial statements.

Advertising, media buying and commercial services from related parties represented approximately 73% and 82% of Fage's total advertising and commercial costs for the six months ended June 30, 2002 and 2003, respectively2. DEFERRED CHARGES:

10The expenses incurred in connection with the issuance and distribution of the Senior Notes issued on February 11, 1997, (see Note 13), including underwriting commissions, were capitalized as deferred charges and are being amortized on a straight-line basis over the term of the Notes. Amortization for the nine months ended September 30, 2002 and 2003 totaled € 250 for each period and are included in interest expense in the accompanying consolidated statements of operations.

73. ~~INVENTORIES~~ TRANSLATIONS OF EURO AMOUNTS INTO U.S. DOLLARS:

~~Inventories~~The Company’s measurement and reporting currency, effective January 1, 2002, is the Euro. The translations of the Euro amounts into U.S. Dollars at the rate of US $ 1.165 to € 1.00 are ~~analyzed~~included solely for the convenience of the reader. This U.S. $ convenience exchange rate is computed based on the noon buying rate in New York City for cable transfers in Euro, as ~~follows:~~certified for customs purposes by the Federal Reserve Bank of New York on September 30, 2003. The convenience translation should not be construed as representations that the Euro amounts have been, could have been, or could in the future be, converted into U.S. Dollars at this or any other rate of exchange. Included in foreign exchange gains (losses), net, for the nine months ended September 30, 2002 and 2003 is an amount of € 10,114 and € 8,603 respectively, relating to unrealized foreign exchange gains (losses) of the Senior Notes referred to in Note 13. Included in foreign exchange gains (losses), net, for the three months ended September 30, 2002 and 2003 is an amount of € (423) and € 1,524, respectively, relating to unrealized foreign exchange gains (losses) of the Senior Notes referred to in Note 13.

	December 31, 2002	June 30, 2003
		(Unaudited)
Merchandise	1,561	1,812
Finished and semi-finished products	8,898	16,458
Raw materials and supplies	7,566	9,300
Advance payments to suppliers for materials and supplies	5,457	4,392
	23,482	31,962

4. MARKETABLE SECURITIES:

~~8. INVESTMENTS~~Equity INsecurities ~~AND~~at December ~~ADVANCES~~31, TO2002 ~~AFFILIATES~~and September 30, 2003, include: (a) € 1,150 and € 1,216 respectively, representing the market value, as of those dates, of 139,831 preferred and 212,849 common shares, of Vis S.A. (a related company ) representing approximately 7.1% of Vis S.A.’s authorized, issued and outstanding shares as of those dates, and (b) € 1,966 and € 2,717 representing the market value, as of those dates, of 420,000 shares of Hellenic Biscuit Company (a related company) representing approximately 0.9%, of Hellenic Biscuit Company’s authorized, issued and outstanding shares.

The ~~Company's~~ above-mentioned investments ~~are~~have ~~analyzed~~been classified as ~~follows:~~available for sale and are carried at their fair market value with the difference in the market values reflected in shareholders’ equity. At December 31, 2002 and September 30, 2003, the cost of these investments in equity securities was € 3,521.

		December 31, 2002	June 30, 2003
			(Unaudited)
Equity participation:
	-Tyras S.A.	1,109	1,109
	-Bizios S.A.	1,236	1,138
	-Packing Hellas Development S.A.	88	88
		2,433	2,335

There were no sales of equity securities for the nine months ended September 30, 2002 and 2003.

The ~~Company's~~ ~~investments~~change in ~~Tyras~~net unrealized ~~S.A.~~holding ~~and~~gain ~~Packing~~(loss) ~~Hellas~~on ~~Development~~available ~~S.A. are accounted~~ for atsale ~~cost,~~equity ~~while~~securities ~~its investment in Bizios S.A. is accounted~~ for ~~under~~ the nine ~~equity~~months ~~method.~~ended ~~In this~~September ~~respect~~30, ~~losses~~2002 ofand 2003 totaled € ~~272~~ (619) and € 98 ~~have been recognized in the accompanying consolidated statements of operations for the six months ended June 30~~817, ~~2002 and 2003,~~ respectively.

118

95. ~~OTHER NON-CURRENT ASSETS~~ ACCOUNTS RECEIVABLE:

~~Other~~Accounts ~~non-current~~receivable ~~assets~~ are analyzed as follows:

	December 31, 2002		~~June~~September 30, 2003
			(Unaudited)
Long-term notes receivable	1,968		1,683
Trade:
Less: current maturities, included in trade accounts receivable	(731	)	(1,023	)
- In Euro	64,882		67,010
	1,237		660
- In foreign currencies	3,197		4,102
Trademarks, net of amortization	81		66
	68,079		71,112
Utility deposits	264		286
- Less: allowance for doubtful accounts	(3,292	)	(3,424	)
Other	71		78
	64,787		67,688
	1,653		1,090
Other:
- Value added tax	4,486		5,143
- Prepaid taxes, other than income taxes	1,022		376
- Prepaid expenses	590		358
- Custom brokers	181		217
- Advances to suppliers	4,855		5,956
- Various debtors	1,250		978
	12,384		13,028
- Less: allowance for doubtful accounts	(4,161	)	(4,254	)
	8,223		8,774
	73,010		76,462

~~10. GOODWILL~~The provision for doubtful accounts for the nine months ended September 30, ~~RESULTING~~2002 ~~FROM~~and ~~CONSOLIDATED~~2003 ~~SUBSIDIARIES:~~ totaled € 482 and € 225, respectively.

~~Goodwill~~The ~~reflected~~fair invalue ~~the~~of ~~accompanying~~accounts ~~consolidated~~receivable ~~balance~~approximates ~~sheets~~the above isrecorded ~~analyzed as follows:~~ values.

	December 31, 2002	June 30, 2003
		(Unaudited)
Food Hellas S.A.	1,755	1,755
Pindos S.A.	374	374
Voras S.A.	2,496	2,496
Xylouris S.A.	964	964
Ellenica S.R.L.	180	180
Tamyna S.A.	1,394	1,394
Agroktima S.A.	134	134
Iliator S.A.	31	31
Zagas S.A.	2,055	2,055
	9,383	9,383

There was no write-off of accounts receivable or other debts during the first nine months of 2002 and 2003.

~~Foods~~It ~~Hellas~~is ~~S.A.: Foods~~the ~~Hellas~~Company’s ispolicy ~~owned~~to ~~99.38%~~attach byliens ~~Fage~~against ~~and~~ the ~~balance~~property of ~~0.62%~~most of isits ~~owned~~delinquent incustomers. ~~equal shares~~Because byof the ~~two~~prolonged ~~shareholders~~and ofcomplex ~~Fage.~~legal procedures ~~Foods~~in ~~Hellas~~Greece, it is anot ~~distribution~~unusual ~~company~~for ~~with~~the acollection ~~network~~process ~~that~~to ~~covers~~take three ~~Northern~~to ~~Greece.~~five years before a case is finalized.

~~Fage acquired its participating interest in Foods Hellas in three tranches~~6. ~~The first (46.9%) was acquired in 1990 for a consideration of € 1,174 from a~~ DUE ~~third~~FROM ~~party who had previously acquired the shares from Fage's present shareholders. The second tranche~~ (~~37.5%~~TO) ~~was~~RELATED acquired in 1992 and the third tranche (14.98%) was acquired in 2001 in each case, from Fage's present shareholders. Since January 1, 1998, the distribution network of Foods Hellas has been operated under the name of Fage. COMPANIES:

~~Pindos S.A.:~~ Fage ~~acquired~~purchases ~~100%~~goods ofand services ~~Pindos~~from ~~S.A.~~and inmakes ~~seven~~sales ~~tranches~~of ~~(51%~~goods into ~~1993,~~certain ~~19.6%~~related companies in ~~1994, 11.2%~~the inordinary ~~1997,~~course ~~12.09%~~of ~~in 1998, 2~~business.~~22%~~ inSuch ~~1999,~~related ~~1.37%~~companies inconsist ~~2001 and 2.52% in 2002) for a total consideration~~ of ~~€ 8~~affiliates or companies,~~359.~~ ~~Pindos~~which ~~S.A.~~have iscommon aownership ~~cheese~~and/or ~~producer~~management inwith ~~Ioannina~~Fage.

~~In September 1999~~Account ~~Foods~~balances ~~Hellas S.A. acquired a 3.89% interest in Pindos S.A. for an amount of € 440. During 2001, Fage increased its participation in~~with ~~Pindos~~related ~~S.A.~~companies byare ~~1.37% through an increase in share capital of Pindos S.A. of € 2,641 in which Food Hellas did not participate and~~ as a result, its interest in Pindos S.A. was reduced to 2.52%. Additionally, in September 2002 Fage purchased from Foods Hellas S.A. its participation of 2.52% in Pindos S.A. for a consideration of € 207. Pindos S.A. merged into Fage Dairy Industry S.A. during 2002. follows:

	December 31, 2002	September 30, 2003
		(Unaudited)
Due from:
- Ioannis Nikolou ULP	1,214	1,641
- Sideris & Co	367	367
-Vis S.A.	6	5
	1,587	2,013
Due to:
- Aspect S.A.	3,669	2,452
- Mornos S.A.	2,263	2,864
- Iofil S.A.	729	1,531
- Palace S.A.	433	372
- Vihep S.A.	329	326
- Evga S.A.	168	1,370
- Bizios S.A.	259	604
	7,850	9,519

Voras S.A.: Fage acquired 100% of Voras S.A. in four tranches (45% in 1996, 25% in 1997, 5.5% in 1998 and 24.5% in 2002) for a total consideration of € 8,499. Voras S.A. is a milk producer in Amintaio. As of December 31, 2002, all assets of Voras S.A. have been transferred to Fage Dairy Industry S.A., and Voras S.A. is in the process of being liquidated. 9

~~Xylouris~~Transactions ~~S.A.: Fage~~with ~~acquired its participating interest 68% in Xylouris S.A. in four tranches (35% in~~related ~~1995,~~companies ~~12% in 1996, 4% in 1997 and 17% in 2002)~~ for the anine ~~total~~months ~~consideration~~ended ofSeptember ~~€ 1~~30,~~614.~~ ~~Xylouris~~2002 isand a2003 ~~cheese~~are ~~producer~~analyzed ~~in Crete.~~ as follows:

Ellenika S.R.L.: Ellenika is a 88.87% owned Italian distribution company. Fage acquired its participating interest in Ellenika in 1993 for a consideration of € 457.

	Purchases from related parties		Sales to related parties
	September 30, 2002	September 30, 2003	September 30, 2002	September 30, 2003
	(Unaudited)
Inventories, materials and supplies	27,398	32,740	3,190	3,362
Advertising and media	9,952	12,798	—	—
Commercial services	3,526	5,970	—	—
	40,876	51,508	3,190	3,362

~~Tamyna~~Purchases ~~S.A.: Fage acquired 100%~~ of ~~Tamyna~~inventories, materials ~~S.A.~~and insupplies ~~five~~from ~~tranches~~related ~~(42.3% in 1996~~parties, ~~4.7%~~represented inapproximately ~~1997, 25.49~~20% in ~~2000, 26.93% in 2001~~ and ~~0.58~~23% inof ~~2002)~~Fage’s ~~for a~~ total purchases ~~consideration~~ of ~~€ 4~~inventories,~~845.~~ ~~Tamyna~~materials isand asupplies ~~cheese~~for the nine ~~producer~~months inended ~~Aliveri.~~September ~~Tamyna~~30, ~~S.A.~~2002 ~~merged~~and ~~into~~2003, ~~Fage Dairy Industry S~~respectively.~~A. during 2002.~~

~~Agroktima~~Advertising, ~~S.A.: Fage~~media ~~acquired~~buying and ~~its~~commercial ~~participating~~services ~~interest~~from ofrelated ~~99.33%~~parties inrepresented ~~Agroktima~~approximately ~~in two tranches (33.24~~71% ~~in 1998~~ and ~~66.09~~ 82% inof ~~2000)~~Fage’s ~~for a~~ total ~~consideration~~advertising ofand ~~€ 1,573.~~commercial ~~Additionally,~~costs ~~in 2000, Foods Hellas S.A. acquired a 0.666% interest in Agroktima~~ for anthe ~~amount~~nine ~~of € 12.~~months ~~Therefore,~~ended ~~Fage~~September ~~obtained an additional (indirect) 0.57% interest in Agroktima and~~30, ~~from December 31,~~ 2002, ~~holds 99.996% of the company's outstanding shares. Agroktima is an agricultural~~ and ~~farm~~2003, ~~development company~~respectively.

~~Iliator S~~7.A. INVENTORIES: ~~The Company has a participation interest of 97% in Iliator S.A., a construction company.~~

~~Zagas~~Inventories ~~S.A.: Zagas~~are ~~S.A. is a cheese producer in Agrinio. Fage acquired its participating interest of~~analyzed ~~98%~~as on January 19, 2001, for a consideration of € 3,020. Additionally, in 2001 Foods Hellas S.A. acquired a 2% interest in Zagas S.A. for an amount of € 62. Therefore, Fage obtained an additional (indirect) 1.988% interest in Zagas S.A. and, from December 31, 2002, holds 99.988% of the company's outstanding shares. The results of this investment have been included in the Company's consolidated results of operations from the date of acquisition. The purchase of Zagas S.A. was accounted for under the purchase method of accounting. follows:

11. SHORT-TERM BORROWINGS:

	December 31, 2002	September 30, 2003
		(Unaudited)
Merchandise	1,561	1,729
Finished and semi-finished products	8,898	12,179
Raw materials and supplies	7,566	9,411
Advance payments to suppliers for materials and supplies	5,457	6,315
	23,482	29,634

~~Short-term borrowings are draw-downs under various lines of credit maintained by the Company with several banks~~8. ~~The aggregate amount of~~ INVESTMENTS ~~available~~IN ~~lines~~AND ofADVANCES ~~credit~~TO ~~was € 38,262 and € 38,532 at December 31, 2002 and June 30, 2003, respectively, of which approximately € 32,424 and € 23,430, were unused as of the above dates.~~ AFFILIATES:

~~Short-term borrowings~~The ~~are~~Company’s ~~denominated in Japanese Yen and~~ investments are ~~secured~~analyzed byas ~~the corporate guarantee of Fage Dairy Industry S.A.~~ follows:

The weighted average interest rates on short-term borrowings as of December 31, 2002 and June 30, 2003, were as follows:

	December 31, 2002	September 30, 2003
		(Unaudited)
Equity participation:
- Tyras S.A.	1,109	1,109
- Bizios S.A.	1,236	1,083
- Packing Hellas Development S.A.	88	88
- Sideris Sp. Th. & Co	—	176
	2,433	2,456

Currency		December 31, 2002		June 30, 2003
				(Unaudited)
Japanese Yen		2.48	%	2.02	%

(i) Tyras S.A. is a cheese producer, in which the Company has a 5.4% participation interest. The investment in Tyras is accounted for at cost.

~~Interest~~(ii) Bizios onS.A. ~~short-term~~is ~~borrowings~~a ~~for~~45% ~~the~~owned ~~six~~cheese ~~months~~producer ~~ended~~accounted ~~June 30, 2002 and 2003, totaled € 680 and € 131 respectively, and~~ for ~~the~~under ~~three months ended June 30, 2002 and 2003 totaled € 383 and € 81, respectively and are included in interest expense in~~ the ~~accompanying~~equity ~~consolidated statements of operations~~method.

1310

12(iii) Packing Hellas Development S. ~~LONG-TERM~~A. ~~DEBT:~~ is a packing material manufacturer in which the Company has a 8.82% participation interest.

		December 31, 2002	June 30, 2003
			(Unaudited)
Long-term debt consists of:
	Senior Notes, due 2007 issued on February 11, 1997. Interest on the Senior Notes is paid semi-annually in February and August, commencing August 1, 1997, at the rate of 9% per annum. The Senior Notes are redeemable, in whole or in part, at the option of the Company at any time at premiums that reduce over time (see Note 13).	87,407	80,434

(iv) During 2003 the Company acquired a 33.33% interest in Sideris Sp. Th. & Co, a non operating cheese company, by capitalizing its unpaid debt of € 176.

The Company’s investments ~~fair~~in ~~value~~Tyras ofS.A. ~~the~~, ~~Company's~~Packing ~~long-term~~Hellas ~~debt~~Development ~~approximates~~S.A. ~~the~~and ~~above-recorded~~Sideris ~~values~~Sp. Th. & Co are accounted for at cost, ~~generally~~while ~~due~~its toinvestment ~~their~~in ~~variable~~Bizios ~~market~~S.A. ~~rates~~is accounted for under the equity method. In this respect, losses of € 388 and € 153 have been recognized in the accompanying consolidated statements of operations for the nine months ended September 30, 2002 and 2003, respectively.

Interest expense (excluding Senior Notes interest expense which is disclosed in Note 13) for the six months ended June 30, 2002 and 2003 totaled € 11 and € 0, respectively, and for the three months ended June 30, 2002 and 2003 totaled € 3 and € 0, respectively, and are included in interest expense in the accompanying consolidated statements of operations9. OTHER NON-CURRENT ASSETS:

~~The Company's~~Other ~~outstanding long~~non-~~term~~current ~~debt~~assets are atanalyzed ~~June 30,~~as ~~2003, of € 80,434 is repayable on February 1, 2007, in one balloon installment.~~ follows:

13. SENIOR NOTES DUE 2007:

	December 31, 2002		September 30, 2003
			(Unaudited)
Long-term notes receivable	1,968		1,751
Less: current maturities, included in trade accounts receivable	(731	)	(1,067	)
	1,237		684
Trademarks, net of amortization	81		62
Utility deposits	264		286
Other	71		87
	1,653		1,119

~~In February 1997, the Company completed the issuance of debt securities (Senior Notes) in the United States~~10. ~~The net proceeds of the offering of U.S.$ 114.6 million were used to repay outstanding obligations and for general working capital.~~ GOODWILL:

~~The Senior~~Goodwill ~~Notes~~reflected issued at an aggregate face amount of U.S.$ 120 million, with maturity date on February 1, 2007, bear interest at a rate of 9% per annum, payable semi-annually on each February 1 and August 1, and commenced on August 1, 1997. The Senior Notes are redeemable in ~~whole or in part, at~~ the ~~option of the Company at~~ ~~any~~accompanying ~~time~~consolidated onbalance orsheets ~~after~~is ~~February 1,~~analyzed ~~2002.~~as follows:

During 2000 the Company repurchased in privately negotiated transactions Senior Notes with an aggregate face amount of U.S. $17.4 million. The repurchased Senior Notes have been canceled.

	December 31, 2002	September 30, 2003
		(Unaudited)
Food Hellas S.A.	1,755	1,755
Pindos S.A.	374	374
Voras S.A.	2,496	2,496
Xylouris S.A.	964	964
Ellenica S.R.L.	180	180
Tamyna S.A.	1,394	1,394
Agroktima S.A.	134	134
Iliator S.A.	31	31
Zagas S.A.	2,055	2,055
	9,383	9,383

~~Interest expense~~Foods ~~(including~~Hellas ~~amortization~~S.A.: Foods ofHellas ~~borrowing~~is ~~costs)~~owned ~~for~~99.38% ~~the~~by ~~six~~Fage ~~months~~and ~~ended~~the balance ~~June 30,~~of ~~2002~~0.62% ~~and~~is ~~2003~~owned ~~totaled~~in ~~€ 4,669~~equal ~~and € 3,960,~~shares ~~respectively,~~by ~~and for~~ the ~~three~~two ~~months~~shareholders ~~ended~~of ~~June 30,~~Fage. Foods ~~2002~~Hellas ~~and~~is ~~2003~~a ~~totaled~~distribution ~~€ 2,078~~company ~~and € 1,969,~~with ~~respectively,~~a ~~and~~network ~~are~~that ~~included~~covers inNorthern ~~interest expense in the accompanying consolidated statements of operations~~Greece.

~~The~~Fage acquired its ~~indebtedness~~participating ~~evidenced~~interest byin ~~the~~Foods ~~Notes~~Hellas ~~constitutes~~in ~~general~~three ~~unsecured~~tranches. The ~~senior~~first ~~obligation~~(46.9%) was acquired in 1990 for a consideration of € 1,174 from a third party who had previously acquired the shares from Fage’s ~~Dairy~~present ~~Industry~~shareholders. The Ssecond tranche (37.A.5%) was acquired in 1992 and ~~ranks~~the ~~pari~~third ~~passu~~tranche (14.98%) was acquired in ~~right~~2001 ofin ~~payment~~each ~~with~~case, ~~all~~from ~~other~~Fage’s ~~senior~~present ~~indebtedness~~shareholders. Since ~~and~~January ~~will~~1, ~~rank~~1998, ~~senior~~the indistribution ~~right~~network of ~~payment~~Foods toHellas ~~all~~has ~~subordinated~~been operated ~~indebtedness~~under ofthe ~~Fage~~name ~~Dairy~~of ~~Industry S~~Fage.A.

The Senior Notes Indenture contains certain covenants that, among other things, limit the type and amount of additional indebtedness that may be incurred by Fage Dairy Industry S.A. and its subsidiaries and imposes certain limitations on investments, loans and advances, sales or transfers of assets, liens, dividends and other payments, the ability of Fage Dairy Industry S.A. and its subsidiaries to enter into sale-leaseback transactions, certain transactions with affiliates and certain mergers. The Company is in compliance with the terms of the Indenture. 11

14Pindos S.A.: Fage acquired 100% of Pindos S.A. in seven tranches (51% in 1993, 19.6% in 1994, 11.2% in 1997, 12.09% in 1998, 2.22% in 1999, 1.37% in 2001 and 2.52% in 2002) for a total consideration of € 8,359. Pindos S.A. is a cheese producer in Ioannina.

14In September 1999 Foods Hellas S. ~~OTHER~~A. ~~CURRENT~~acquired ~~LIABILITIES:~~ a 3.89% interest in Pindos S.A. for an amount of € 440. During 2001, Fage increased its participation in Pindos S.A. by 1.37% through an increase in share capital of Pindos S.A. of € 2,641 in which Food Hellas did not participate and as a result, its interest in Pindos S.A. was reduced to 2.52%. Additionally, in September 2002 Fage purchased from Foods Hellas S.A. its participation of 2.52% in Pindos S.A. for a consideration of € 207. Pindos S.A. merged into Fage Dairy Industry S.A. during 2002.

~~The~~Voras ~~amount~~S.A.: ~~reflected~~Fage acquired 100% of Voras S.A. in ~~the~~four ~~accompanying~~tranches ~~consolidated~~(45% ~~balance~~in ~~sheets~~1996, 25% in 1997, 5.5% in 1998 and 24.5% in 2002) for a total consideration of € 8,499. Voras S.A. is ~~analyzed~~a asmilk ~~follows:~~producer in Amintaio. As of December 31, 2002, all assets of Voras S.A. have been transferred to Fage Dairy Industry S.A., and Voras S.A. is in the process of being liquidated.

		December 31, 2002	June 30, 2003
			(Unaudited)
Taxes withheld:
	Payroll	452	192
	Third parties	434	373
	Milk producers	61	74
	Other	278	119
		1,225	758
Advances from customers		1,597	6
Accrued interest		3,243	3,067
Social security funds payable		1,274	763
Accrued and other liabilities		2,259	4,021
		6,776	7,851
TOTAL		9,598	8,615

Xylouris S.A.: Fage acquired its participating interest 68% in Xylouris S.A. in four tranches (35% in 1995, 12% in 1996, 4% in 1997 and 17% in 2002) for a total consideration of € 1,614. Additionally, during the third quarter of 2003 the Company acquired an interest of 3.75% for an amount of € 46. Xylouris is a cheese producer in Crete.

15Ellenika S. ~~CONTINGENCIES~~R.L.: ~~AND~~Ellenika ~~COMMITMENTS:~~ is a 88.87% owned Italian distribution company. Fage acquired its participating interest in Ellenika in 1993 for a consideration of € 457.

~~The~~Tamyna ~~Company~~S.A.: Fage isacquired a100% ~~party~~of Tamyna toS.A. ~~various~~in ~~lawsuits~~five ~~and~~tranches ~~arbitration~~(42.3% ~~proceedings~~ in ~~the~~1996, ~~normal~~4.7% ~~course~~in of1997, ~~business~~25.49% ~~According~~in to2000, 26.93% ~~the~~in ~~Company's~~2001 ~~management~~ and ~~its~~0.58% ~~legal advisors,~~in ~~all~~2002) offor ~~the~~a ~~lawsuits~~total ~~will~~consideration ~~be settled~~of ~~without~~€ ~~any~~4,845. ~~material~~Tamyna is ~~adverse~~a ~~effect~~cheese onproducer ~~the~~in ~~Company's~~Aliveri. ~~consolidated~~Tamyna ~~financial~~S.A. ~~position~~merged orinto ~~results~~Fage ofDairy ~~operations~~Industry S.A. during 2002.

~~Fage~~ Agroktima S.A.: Fage ~~has~~acquired ~~been~~its participating ~~appointed~~interest asof an99.33% ~~official~~in ~~sponsor~~Agroktima ofin ~~the~~two ~~Olympic~~tranches ~~games~~(33.24% ~~held~~in 1998 and 66.09% in ~~Athens~~2000) for a total consideration of € 1,573. Additionally, in ~~the~~2000, ~~year~~Foods ~~2004~~Hellas S.A. acquired ~~The~~a ~~future~~0.666% ~~commitment~~interest ~~under~~in ~~the~~Agroktima ~~sponsorship~~for ~~agreement~~an ~~amounts~~amount toof ~~approximately~~ € 3 12.1 Therefore, Fage obtained an additional (indirect) 0.57% interest in Agroktima ~~million~~ and, from December 31, 2002, holds 99.996% of the company’s outstanding shares. Agroktima is an agricultural and farm development company.

15Iliator S.A.: The Company has a participation interest of 97% in Iliator S.A., a construction company.

Zagas S.A.: Zagas S.A. is a cheese producer in Agrinio. Fage acquired its ~~PART~~participating I interest of 98% on January 19, 2001, for a consideration of € 3,020. Additionally, in 2001 Foods Hellas S.A. acquired a 2% interest in Zagas S.A. for an amount of € 62. Therefore, Fage obtained an additional (indirect) 1.988% interest in Zagas S.A. and, from December 31, 2002, holds 99.988% of the company’s outstanding shares. The results of this investment have been included in the Company’s consolidated results of operations from the date of acquisition. The purchase of Zagas S.A. was accounted for under the purchase method of accounting.

~~ITEM 2~~ 11. SHORT-TERM BORROWINGS:

Short-term ~~MANAGEMENT'S~~borrowings ~~DISCUSSION~~are ~~AND~~draw-downs ~~ANALYSIS~~under OFvarious lines ~~FINANCIAL~~of ~~CONDITION~~credit ~~AND~~maintained ~~RESULTS~~by OFthe ~~OPERATIONS~~ Company with several banks. The aggregate amount of available lines of credit was € 38,262 and € 38,532 at December 31, 2002 and September 30, 2003, respectively, of which approximately € 32,424 and € 16,926, were unused as of the above dates.

~~General~~ Short-term borrowings are denominated in Japanese Yen and are secured by the corporate guarantee of Fage Dairy Industry S.A.

InThe ~~the~~weighted ~~first~~average interest ~~six~~rates ~~months~~on ofshort-term ~~2003,~~borrowings ~~the~~as ~~total Greek market~~ of ~~white~~December ~~milk~~31, ~~decreased~~2002 ~~by 1.3% in volume due to a continued decline of 4.7% in the large evaporated milk segment~~ and ~~a decline of 13.8% in the UHT sector. The fresh milk market also decreased significantly by 6.3% in the six months period compared to the same period last year~~September 30, while the ESL milk sector increased by 41.5% due to new segment openings. Refrigerated chocolate milk decreased by 11.1% while the cream market remained the same. The yogurt market reflected an increase of 1.8% due to an increase in the branded segment by 2.9%. Desserts grew by 5.9%2003, ~~while~~were ~~the~~as ~~volume of packaged cheese also increased by 4% over the same period.~~ follows:

FAGE's white milk sales, both fresh and ESL, increased by 0.5% in volume in the first six months of 2003 over to the same period of 2002, performing better than the market decline. In mid May, the Company launched a new innovative milk in ESL segment under the GALA 10 brand name. It is a product with ten days shelf life. Due to this launch, FAGE experienced an increase of 30.7% in ESL sales volume. On the other hand, fresh and chocolate milk sales dropped by 13% and 6.2% respectively following the market trend. Milk creams performed a 4.3% increase in sales for the six months ended June 30, 2003 compared to six months ended June 30, 2002.

Currency	December 31, 2002		September 30, 2003
			(Unaudited)
Japanese Yen	2.48	%	2.09	%
Euro	—		4.38	%

FAGE's domestic yogurt volume sales increased by 2.5% in the first six months of 2003 over the same period last year, due to an increase of 9.6% in the strained segment. In April, the Company relaunched its SILOUET product line reversing a downward trend of sales. In addition, the toddler range under the Begin With Junior brand name was relaunched in June, 2003. 12

~~Packaged cheese~~Interest ~~sales~~on ~~increased~~short-term borrowings ~~by 3.5% in volume~~ for the ~~first~~nine ~~six~~ months ofended ~~2003.~~September In30, ~~late~~2002 ~~June~~and ~~two~~2003, ~~products~~totaled in€ ~~slices~~848 and ~~were~~€ ~~launched~~242 ~~under~~respectively, ~~the~~and ~~TRIKALINO brand~~for ~~name.~~the ~~Dessert~~three ~~sales~~months ~~increased~~ended bySeptember 6%30, in2002 and ~~volume~~2003 ~~due~~totaled to€ ~~the~~168 ~~two~~and ~~innovative~~€ ~~products~~111, ~~launched~~respectively ~~within~~and are ~~the~~included ~~first~~in ~~quarter~~interest ofexpense ~~2003~~in ~~under~~ the ~~Glykoutalies~~accompanying ~~desserts~~consolidated statements ~~line.~~of operations.

~~Exports increased by 22% in volume, mainly due to exports of yogurt~~12. LONG-TERM DEBT:

Fage increased its prices by 3.5% on average in January 2003.

	December 31, 2002	September 30, 2003
		(Unaudited)
Long-term debt consists of:
Senior Notes, due 2007 issued on February 11, 1997. Interest on the Senior Notes is paid semi-annually in February and August, commencing August 1, 1997, at the rate of 9% per annum. The Senior Notes are redeemable, in whole or in part, at the option of the Company at any time at premiums that reduce over time (see Note 13).	87,407	78,959

~~In 2002,~~The ~~the~~fair ~~Company~~value ~~retroactively applied EITF 01-09 and reflected trade support actions that are generally invoiced by customers as a deduction~~ of ~~sales rather than selling expenses. Such costs amounted to € 8,567 and € 10,514 for~~ the ~~six months ended June 30, 2002 and 2003, respectively and~~ ~~€ 4,540~~Company’s ~~and~~long-term ~~€ 6,487~~debt ~~for~~approximates the ~~three~~above-recorded ~~months ended June 30~~values, ~~2002~~generally ~~and 2003, respectively. In addition, distribution costs incurred by the~~due ~~Company and provided~~ to ~~representatives~~their asvariable anmarket ~~allowance on sales were reflected as selling expenses~~rates. Such distribution costs amounted to € 13,120 and € 14,075 for the six months ended June 30, 2002 and 2003, respectively and € 6,953 and € 7,434 for the three months ended June 30, 2002 and 2003, respectively.

16Interest expense (excluding Senior Notes interest expense which is disclosed in Note 13) for the nine months ended September 30, 2002 and 2003 totaled € 13 and € 0, respectively, and for the three months ended September 30, 2002 and 2003 totaled € 2 and € 0, respectively, and are included in interest expense in the accompanying consolidated statements of operations.

~~Results~~The Company’s outstanding long-term debt at September 30, 2003, of ~~Operations~~ € 78,959 is repayable on February 1, 2007, in one balloon installment.

~~The~~13. SENIOR NOTES ~~following~~DUE ~~table sets forth, for the years indicated, certain items in the Company's consolidated income statements expressed as percentages of net sales~~2007:

	Six months ended June 30,				Three months ended June 30,
	2002		2003		2002		2003
	(Unaudited)				(Unaudited)
Net sales	100.0	%	100.0	%	100	%	100	%
Cost of sales	61.4		61.7		63.1		62.8
Gross profit	38.6		38.3		36.9		37.2
Selling, general and administrative expenses.	28.7		31.6		29.9		33.8
Income from operations	9.9		6.7		7.0		3.4
Interest expense	3.4		2.4		2.8		2.2
Foreign exchange gains (losses), net	7.6		4.6		15.2		5.1
Gains (losses)on equity investee	(0.1	)	(0.1	)	(0.2	)	0.1
Other income (expenses), net	0.5		0.4		0.6		0.3
Income before income taxes and minority interests	14.5		9.2		19.8		6.7
Provision for income taxes	(6.1	)	(4.1	)	(8.9	)	(4.0	)
Income before minority interests	8.4		5.1		10.9		2.7
Minority interests	(0.1	)	—		(0.1	)	—
Net income	8.3	%	5.1	%	10.8	%	2.7	%

In February 1997, the Company completed the issuance of debt securities (Senior Notes) in the United States. The net proceeds of the offering of U.S.$ 114.6 million were used to repay outstanding obligations and for general working capital.

~~Six~~The ~~months~~Senior ~~ended~~Notes ~~June~~issued at an aggregate face amount of U.S.$ 30120 million, ~~2003~~with ~~compared~~maturity todate ~~six~~on February ~~months~~1, ~~ended~~2007, ~~June 30~~bear interest at a rate of 9% per annum, payable semi-annually on each February 1 and August 1, and commenced on August 1, 1997. The Senior Notes are redeemable in whole or in part, at the option of the Company at any time on or after February 1, 2002 .

~~Net~~During ~~sales. Net~~2000 ~~sales for~~ the ~~six~~Company ~~months~~repurchased ~~ended~~in ~~June 30,~~privately ~~2003~~negotiated ~~were € 173.2 million~~transactions ($Senior ~~201.2 million),~~Notes with an ~~increase~~aggregate offace ~~€ 13.6 million~~amount ($of 15U.~~8 million), or 8~~S.~~5%,~~ ~~from~~$ ~~€ 159~~17.~~6 million ($ 185.~~4 ~~million)~~ ~~for the six months ended June 30, 2002, representing a total volume increase of 1~~million.~~8%.~~ The ~~increase~~repurchased ~~was~~Senior ~~attributable~~Notes tohave ~~the factors discussed above under "General"~~been canceled.

~~Gross~~Interest ~~profit. Gross profit for the six months ended June 30, 2003 was~~expense ~~€ 66.2 million~~ ($including ~~76.9 million),~~amortization ~~an increase~~ of ~~€ 4.6 million~~borrowing ~~($ 5.3 million~~costs), ~~or 7.5%, from € 61.6 million ($ 71.6 million)~~ for the ~~six~~nine months ended ~~June~~ September 30, 2002. ~~This improvement~~and is2003 ~~attributable~~totaled to€ ~~the~~7,010 ~~factors~~and ~~discussed~~€ ~~above~~5,899, respectively, ~~under~~and ~~"General". Gross profit as a percentage of net sales~~ for the ~~six~~three months ended ~~June~~ September 30, ~~2003 decreased to 38.3% from 38.6% for the respective period of~~ 2002. ~~Cost~~and ~~of sales for the six months ended June 30,~~ 2003 totaled ~~was~~ € ~~106.9 million~~ ~~($124.~~2 ~~million)~~,341 anand ~~increase of~~ € ~~8.9 million~~ ~~($ 10.3 million) or 9.~~1%,939, ~~from~~respectively, €and ~~98.0 million~~are ($included ~~113.8 million)~~in ~~for~~interest ~~the six months ended June 30, 2002.~~expense ~~Cost~~in ofthe ~~sales~~accompanying asconsolidated astatements ~~percentage~~ of ~~net sales increased from 61~~operations.~~4% for the six months ended June 30, 2002 to 61.7% for the six months ended June 30, 2003.~~

~~Selling,~~The ~~general~~indebtedness evidenced ~~and~~by ~~administrative expenses. Selling, general and administrative expenses ("SG & A") for~~ the ~~six months~~Notes ~~ended~~constitutes ~~June 30,~~general ~~2003~~unsecured ~~were~~senior ~~€ 54.7 million~~obligation ~~($ 63.5 million), an increase~~ of ~~€ 8.9 million ($~~Fage ~~10.3 million),~~Dairy orIndustry 19S.~~4%, from € 45~~A.~~8 million~~ ($and ~~53.2 million)~~ranks ~~for~~pari ~~the~~passu ~~respective~~in ~~period~~right of ~~2002.~~payment ~~SG &~~with Aall asother ~~a percentage of net sales increased~~senior ~~from~~indebtedness ~~28.7%~~and ~~for~~will ~~the~~rank ~~first~~senior ~~six~~in ~~months~~right of ~~2002~~payment to ~~31.6%~~all for the first six months of 2003, an increase of 10.1%. This increase was partly due to advertising expenses to support the new brand name GALA 10 launch and partly due to increased compensation of certain members of the Filippou family employed by the Company. The Company believes thesubordinated ~~amounts~~indebtedness ~~paid to members~~ of ~~the~~Fage ~~family~~Dairy ~~are~~Industry ~~appropriate consideration for the services provided~~S. A.

17The Senior Notes Indenture contains certain covenants that, among other things, limit the type and amount of additional indebtedness that may be incurred by Fage Dairy Industry S.A. and its subsidiaries and imposes certain limitations on investments, loans and advances, sales or transfers of assets, liens, dividends and other payments, the ability of Fage Dairy Industry S.A. and its subsidiaries to enter into sale-leaseback transactions, certain transactions with affiliates and certain mergers. The Company is in compliance with the terms of the Indenture.

~~Income from operations. Income from operations for the six months ended June 30, 2003 was € 11.6 million ($~~ 13.5 million), a decrease of € 4.2 million ($ 4.9 million), or 26.6%, from € 15.8 million ($ 18.4 million) for the six months ended June 30, 2002. Income from operations as a percentage of net sales decreased from 9.9% in the first six months of 2002 to 6.7% in the first six months of 2003. This decrease was mainly due to the increased SG & A expense as above.

~~Interest expense~~14. ~~Interest expense for the six months ended June 30, 2003 was~~ OTHER ~~€ 4.1 million~~CURRENT ($ 4.8 million), a decrease of € 1.3 million ($ 1.5 million), or 24.1%, from € 5.4 million ($6.2 million) for the six months ended June 30, 2002. This decrease is mainly due to the revaluation of the Euro against the US dollar for the six months ended June 30, 2003 in comparison with the exchange rate for the respective period of 2002. LIABILITIES:

~~Foreign~~The ~~exchange losses (gains), net. Foreign exchange gains for the six months ended June 30, 2003 were~~amount €reflected ~~8.0 million~~in ~~($ 9.3 million) mainly due to~~ the ~~Senior~~accompanying ~~Notes~~consolidated ~~quarter~~balance ~~end~~sheets ~~remeasurement.~~is ~~For~~analyzed ~~the six months ended June 30, 2002 there were foreign exchange gains of~~as ~~€ 12.2 million ($14.2 million).~~ follows:

Losses on equity investee. Losses on equity investee for the six months ended June 30, 2003 were € 0.1 million ($ 0.1 million). For the six months ended June 30, 2002 there were losses of € 0.3 million ($0.3 million).

	December 31, 2002	September 30, 2003
		(Unaudited)
Taxes withheld:
Payroll	452	213
Third parties	434	410
Milk producers	61	44
Other	278	132
	1,225	799

Advances from customers	1,597	44

Accrued interest	3,243	1,225
Social security funds payable	1,274	713
Accrued and other liabilities	2,259	3,705
	6,776	5,643
TOTAL	9,598	6,486

~~Other income (expenses), net~~15. ~~Other income for the six months ended June 30, 2003 was~~ CONTINGENCIES ~~€ 0.5 million~~AND ~~($ 0.6 million). Other income for the six months ended June 30, 2002 was € 0.8 million ($ 0.9 million).~~ COMMITMENTS:

~~Provision~~The ~~for~~Company ~~income~~is ~~taxes. The~~a ~~provision~~party ~~for~~to ~~income~~various ~~taxes~~lawsuits ~~for~~and arbitration proceedings in the ~~six~~normal ~~months~~course ~~ended~~of ~~June 30,~~business. According ~~2003~~to ~~was~~the Company’s management and ~~€ 7.1 million~~its ($legal ~~8.2 million).~~advisors, ~~For~~all of the ~~six~~lawsuits ~~months~~will ~~ended~~be ~~June 30,~~settled ~~2002~~without any material adverse effect on the ~~provision~~Company’s ~~for~~consolidated ~~income~~financial ~~taxes~~position ~~was € 9.8 million~~or ($results 11of operations.~~4 million).~~

~~Net~~Fage ~~income~~S. ~~Net~~A. ~~income~~has ~~for~~been ~~the~~appointed ~~six~~as ~~months~~an ~~ended~~official ~~June 30,~~sponsor ~~2003~~of the ~~was~~Olympic ~~€ 8.8 million~~games ~~($ 10.2 million),~~held ain ~~decrease~~Athens ofin ~~€ 4.5 million~~the ($year 52004.~~2 million),~~ The orfuture ~~33.8%,~~commitment ~~from~~under ~~€ 13.3 million ($15.4 million), for~~ the ~~six~~sponsorship ~~months~~agreement ~~ended~~amounts ~~June 30,~~to approximately ~~2002~~€ 1.9 million.

~~Three months ended June 30, 2003 compared to three months ended June 30, 2002~~ 14

~~Net~~ITEM sales. Net sales for the three months ended June 30, 2003 were € 93.3 million ($ 108.4 million), an increase of € 5.6 million ($ 5.8 million), or 6.4%, from € 87.7 million ($ 101.9 million) for the three months ended June 30, 2002. The increase was attributable to the factors discussed above under "General". 2

~~Gross~~MANAGEMENT’S ~~profit. Gross~~DISCUSSION ~~profit~~AND ~~for~~ANALYSIS ~~the~~OF ~~three~~FINANCIAL ~~months ended June~~CONDITION ~~30,~~AND ~~2003~~RESULTS ~~was € 34.7 million~~OF ($ 40.3 million), an increase of € 2.4 million ($ 2.8 million), or 7.4%, from € 32.3 million ($ 37.5 million) for the three months ended June 30, 2002. This improvement is attributable to the factors discussed above under "General". Gross profit as a percentage of net sales for the three months ended June 30, 2003 increased to 37.2% from 36.9% for the respective period of 2002. Cost of sales for the three months ended June 30, 2003 was € 58.6 million ($ 68.1 million), an increase of € 3.3 million ($ 3.8 million) or 6.0% from € 55.3 million ($ 64.2 million) for the three months ended June 30, 2002. Cost of sales as a percentage of net sales increased from 63.1% for the three months ended June 30, 2003 to 62.8% for the three months ended June 30, 2002. OPERATIONS

Selling, general and administrative expenses. Selling, general and administrative expenses ("SG & A") for the three months ended June 30, 2003 were € 31.5 million ($ 36.6 million), an increase of € 5.3 million ($ 6.2 million), or 20.2%, from € 26.2 million ($ 30.4 million) for the respective period of 2002. SG & A as a percentage of net sales increased from 29.9% for the three months ended June 30, 2002 to 33.8% for the three months ended June 30, 2003, an increase of 13.0%. This increase was General

18In the first nine months of 2003, the entire Greek white milk market volume increased by 0.5% from the comparable period of 2002, due to a 6.5% increase in the two-month period of July and August. The fresh milk market continued its declining trend with a 4.5% decrease as did evaporated and UHT (-2.6% and -10.4% respectively). ESL white milk, with a 38% increase from the comparable period of 2003, is the only sector of the market which increased. This increase can be largely attributed to the launch of the new FAGE 10 product and the substantial advertising investment throughout the year. ESL now accounts for 22.8% of the refrigerated milk market. Chocolate milk declined by 7.8% and this decrease is reflected in all market segments. Finally the cream market increased by 1.3% from the comparable period of 2002.

~~partly due~~The toGreek ~~advertising~~market ~~expenses~~for tosealed ~~support~~yogurt ~~the~~increased ~~new~~by ~~brand~~2.0% from ~~name~~the ~~GALA~~comparable 10period ~~launch~~of ~~and~~2002. ~~partly~~The ~~due~~segments todriving ~~increased~~this ~~compensation~~increase ~~of certain members of the~~are ~~Filippou~~mainly ~~family~~strained ~~employed~~yogurt ~~by the Company~~(+2.3%) ~~The~~and ~~Company~~children’s ~~believes~~yogurt ~~the~~(+12.5%). ~~amounts~~Desserts ~~paid~~volume grew toby ~~members~~8.6% offrom the ~~family~~comparable ~~are~~period ~~appropriate~~of ~~consideration for the services provided~~2002.

~~Income~~The ~~from~~Greek ~~operations. Income~~market ~~from operations~~ for ~~the~~packaged ~~three~~cheese ~~months~~increased ~~ended~~by ~~June 30, 2003 was € 3.2 million ($ 3.~~7 ~~million), a decrease of € 2.9 million ($ 3.4 million), or 47.5~~%~~, from~~ ~~€ 6.1 million~~compared ~~($ 7.1 million) for the three months ended June 30, 2002. Income from operations as a percentage of net sales for the three months ended June 30, 2003 decreased~~ to ~~3.4% from 7.0% for~~ the ~~comparable~~same period of ~~2002. This decrease was mainly due to~~ the ~~increased~~year ~~SG & A expense as above~~2002.

~~Interest~~In ~~expense. Interest expense for~~ the ~~three~~first nine months ~~ended~~of ~~June 30~~2003, ~~2003~~FAGE’s ~~was~~white milk ~~€ 2.1 million~~sales ($increased 2by 0.~~4 million),~~5% ain ~~decrease~~volume offrom ~~€ 0.4 million~~the ($comparable ~~0.5 million),~~period orof ~~16.0%~~2002, ~~from~~following ~~€ 2.5 million~~the ($market 2trend.~~9 million)~~ The ~~for~~Company ~~the~~continued supporting ~~three~~its ~~months~~ESL ~~ended~~product ~~June 30,~~range ~~2002.~~through ~~This~~various ~~decrease~~activities, isand ~~mainly~~experienced ~~due~~an increase to34.9% ~~the~~in ~~revaluation~~ESL ofsales volume. On the ~~Euro~~other ~~against~~hand, ~~the~~fresh US& chocolate ~~dollar~~milk ~~for~~sales ~~the~~dropped ~~three~~by ~~months~~19.1% ~~ended~~and ~~June 30,~~6.3% ~~2003~~respectively. inMilk ~~comparison~~cream ~~with~~sales ~~the~~experienced an ~~exchange~~increase ~~rate~~of 0.5% ~~for~~from the ~~respective~~ comparable period of 2002.

~~Foreign~~FAGE’s ~~exchange~~domestic ~~losses~~yogurt ~~(gains),~~volume ~~net. Foreign~~sales ~~exchange~~increased ~~gains~~by ~~for~~1.0%. In September, the ~~three~~Company ~~months~~relaunched ~~ended~~its ~~June 30,~~Ageladitsa ~~2003~~product ~~were € 4~~line.~~7 million~~ ($Dessert ~~5.5 million)~~sales increased ~~mainly~~by ~~due to the Senior Notes quarter end remeasurement~~5.3% ~~For~~in ~~the~~volume ~~three~~while ~~months~~one ~~ended~~more ~~June 30,~~product ~~2002~~(Panaccotta) ~~there~~was added ~~were~~to ~~foreign~~Glukokoutalies ~~exchange~~product ~~gains~~line ofin ~~€ 13~~September.~~4 million ($ 15.6 million).~~

~~Gains~~Packaged ~~(losses)~~cheese onsales ~~equity~~performed ~~investee. Gains~~well onwith ~~equity~~a ~~investee for the three months ended June 30, 2003 were € 0~~4.~~1 million~~4% increase ($in ~~0.1 million).~~volume ~~For~~from the ~~three~~comparable ~~months~~period ~~ended~~of ~~June 30,~~ 2002. ~~there~~In ~~were~~July, ~~losses~~one ofmore product ~~€ 0.1 million~~ ($Gouda cheese in ~~0.1 million~~slices). was launched.

~~Other~~During ~~income (expenses)~~January, ~~net. Other~~FAGE ~~income~~increased prices for ~~the~~all ~~three months ended June 30, 2003 was~~segments ~~€ 0.3 million~~by ~~($ 0.~~3 ~~million)~~. ~~Other income for the three months ended June 30, 2002 was € 0.~~5 ~~million ($ 0~~%.~~6 million).~~

~~Provision~~In ~~for~~2002, ~~income~~the ~~taxes~~Company retroactively applied EITF 01-09 and reflected trade support actions that are generally invoiced by customers as a deduction of sales rather than selling expenses. ~~The~~ ~~provision~~Such ~~for~~costs ~~income~~amounted ~~taxes~~to € 13,531 and € 16,107 for the ~~three~~nine months ended ~~June~~ September 30, 2002 and 2003, ~~was € 3.7 million~~respectively ($and € 4~~.3 million).~~,964 and ~~For~~€ 5,593 for the three months ended ~~June~~ September 30, 2002 and 2003, respectively. In addition, distribution costs incurred by the ~~provision~~Company and provided to representatives as an allowance on sales were reflected as selling expenses. Such distribution costs amounted to € 20,721 and € 21,922 for ~~income~~the ~~taxes~~nine ~~was~~months ended September 30, 2002 and 2003, respectively and € 7~~.8 million~~,601 ($and ~~9.1 million).~~€ 7,847 for the three months ended September 30, 2002 and 2003, respectively.

Net income. Net income for the three months ended June 30, 2003 was € 2.6 million ($ 3.0 million), a decrease of € 6.9 million ($ 8.0 million), or 72.6%, from € 9.5 million ($ 11.0 million), for the three months ended June 30, 2002. 15

~~Liquidity~~Results of ~~and Capital Resources~~ Operations

The ~~Company~~following ~~has~~table ~~historically funded its operations~~sets forth, ~~capital~~for ~~expenditures~~the ~~and~~years ~~working~~indicated, ~~capital~~certain ~~requirements~~items ~~through~~in athe ~~combination~~Company’s ~~of cash flows from operations,~~consolidated ~~short-term~~income ~~borrowings,~~statements ~~long-term~~expressed ~~debt~~as ~~and~~percentages ~~capital~~of ~~lease~~net ~~obligations.~~ sales:

Cash flows from operations can be impacted by the Company's extension of credit and the terms and collection of its receivables. The Company has established criteria for granting credit to customers, which are generally based upon the size of the customer's operations and consideration of relevant financial data. Business is generally conducted with such customers under normal terms with collection expected within sixty (60) days after shipment. At each reporting period date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate allowance for doubtful accounts. It is the Company's policy to attach liens against the property of most of its delinquent customers. Because of the prolonged and complex legal procedures in Greece, it is not unusual for the collection process to take three to five years before a case is finalized. Notwithstanding this, the Company does not consider its accounts receivable collection process to be delayed. Rather,

	Nine months ended September 30,				Three months ended September 30,
	2002		2003		2002		2003
	(Unaudited)				(Unaudited)

Net sales	100.0	%	100.0	%	100	%	100	%
Cost of sales	61.9		61.9		62.9		62.1
Gross profit	38.1		38.1		37.1		37.9
Selling, general and administrative expenses	27.5		30.9		25.6		30.4
Income from operations	10.6		7.2		11.5		7.5
Interest expense	3.1		2.3		2.7		2.2
Foreign exchange gains (losses), net	4.8		3.1		(0.2	)	0.2
Gains (losses)on equity investee	(0.2	)	(0.1	)	(0.1	)	(0.1	)
Other income (expenses), net	0.2		0.1		—		0.5
Income before income taxes and minority interests	12.3		8.0		8.5		5.9
Provision for income taxes	(4.2	)	(2.9	)	(0.9	)	(0.8	)
Income before minority interests	8.1		5.1		7.6		5.1
Minority interests	—		—		—		—
Net income	8.1	%	5.1	%	7.6	%	5.1	%

19Nine months ended September 30, 2003 compared to nine months ended September 30, 2002

~~the~~Net sales. Net ~~Company~~sales ~~believes~~for ~~its~~the ~~cash~~nine ~~management~~months ~~policies~~ended ~~are~~September ~~effective~~30, in2003 ~~ensuring~~were ~~that~~€ ~~the~~266.7 ~~turnover~~million of($ 310.7 ~~its~~million), ~~accounts~~an ~~receivable~~increase ~~and~~of ~~accounts~~€ ~~payable~~15.2 ~~are~~million ~~properly~~($ ~~balanced~~17.7 ~~within~~million), ~~general~~or ~~business~~6.0%, ~~practices~~from in€ ~~Greece~~251.5 million ($ 293.0 million) for the nine months ended September 30, 2002. The increase was attributable to the factors discussed above under “General”.

~~Operating~~Gross ~~Activities~~profit. ~~Net~~ Gross ~~cash~~profit ~~used in operating activities~~ for the ~~six~~nine months ended September ~~June~~ 30, 2003 was € 2 101.4 7 million ($ 2118.8 5 million), aan ~~decrease~~increase of € 10 6.3 0 million ($ 127.0 million), ~~compared~~or 6.3%, from € 95.7 million ($ 111.5 million) for the nine months ended September 30, 2002. This improvement is attributable to the increase in net ~~cash~~sales. Gross ~~from~~profit ~~operating~~as a percentage of net sales ~~activities~~for the nine months ended September 30, 2003 was 38.1%, the same as in the comparable period of 2002. Cost of sales for the nine months ended September 30, 2003 was € 7 165.9 0 million ($ 192.2 million), an increase of € 9.2 million ($ 10.7 million) or 5.9% from € 155.8 million ($ 181.5 million) for the nine ~~six~~ months ended ~~June~~ September 30, 2002,. ~~which~~Cost ~~mainly~~of issales ~~due~~as to a ~~decrease~~percentage inof ~~earnings~~net sales ~~and~~was ~~change~~61.9% for the nine months ended September 30, 2003, in the comparable ~~working~~period ~~capital.~~of 2002.

~~Investing~~Selling, general ~~Activities~~and administrative expenses. ~~Net~~ Selling, general ~~cash~~and ~~used~~administrative inexpenses ~~investing~~(‘‘SG ~~activities~~& A’’) for the ~~six~~nine months ended September ~~June~~ 30, 2003 ~~was~~ were € 10 82.4 5 million ($ 1296.1 million), an increase of € 5 13.8 4 million ($ 615.7 6 million), or 19.4%, from € 4 69.6 1 million ($ 580.3 5 million) for the respective period of 2002. SG & A as a percentage of net sales increased from 27.5% for the ~~six~~first nine months ~~ended~~of ~~June 30,~~ 2002 to 30.9% for the first ~~Capital~~nine ~~expenditures~~months of ~~€ 10.5~~2003, ($an increase of 12.~~2 million)~~4%. ~~were~~This ~~made~~increase inwas ~~continued~~partly ~~investments~~due to promotion and other expenses in ~~Company'~~connection with Fage’s ~~facilities~~sponsorship inconcerning the ~~order~~2004 Athens Olympic Games, partly due to ~~further~~advertising ~~realize~~expenses ~~operating~~to ~~efficiencies~~support the asnew brand name GALA ~~discussed~~10 ~~above~~launch and ~~under~~partly ~~"General"~~due to increased compensation of certain members of the Filippou family employed by the Company. The Company believes the amounts paid to members of the family are appropriate consideration for the services provided.

~~Financing~~Income ~~Activities~~from operations. ~~Net~~ Income ~~cash~~ from ~~financing~~operations ~~activities~~ for the ~~six~~nine months ended ~~June~~ September 30, 2003 was € 10 19.5 2 million ($ 1222.2 4 million), ~~compared~~a decrease toof ~~net~~€ ~~cash~~7.4 ~~from~~million ~~financing~~($ ~~activities~~8.6 ofmillion), or 27.8%, from € 5 26.1 6 million ($ 5 31.9 0 million) for the ~~six~~nine months ended ~~June~~ September 30, 2002,. Income ~~mainly~~from operations as a ~~result~~percentage of net ~~the~~sales ~~short-term~~decreased ~~loan~~from ~~increase~~10.6% in ~~2003~~the first nine months of ~~€ 10.5 million~~2002 ($to 127.2 ~~million)~~% in the first nine months of 2003. This decrease was mainly due to the increased SG & A.

~~Sources~~Interest ~~of Capital~~expense. ~~The~~ Interest ~~Company~~expense ~~funds~~for ~~its~~the ~~operating~~nine ~~costs~~months ~~through~~ended September ~~cash~~30, ~~from~~2003 ~~operations~~was ~~and~~€ ~~short-term~~6.1 ~~borrowings under~~million ~~various~~($ ~~lines~~7.1 ofmillion), ~~credit~~a ~~maintained~~decrease atof € ~~several banks~~1.8 Atmillion ~~June 30,~~($ ~~2003~~2.1 million), ~~approximately~~or 22.8%, from € 23 7.4 9 million ($ 279.2 million) ~~was~~for ~~available~~the nine months ended September 30, 2002. This ~~see~~decrease is mainly due to ~~"Note 11~~the ~~Short-Term~~revaluation ~~Borrowings".~~of the Euro against the US dollar for the nine months ended September 30, 2003 compared to the exchange rate for the comparable period of 2002.

~~Contractual Obligations.~~ 16

~~Contractual~~ Foreign exchange ~~obligations~~losses (gains), asnet. Foreign exchange ~~June~~ gains for the nine months ended September 30, 2003 were € 8.2 million ($ 9.6 million) mainly due to the Senior Notes quarter end remeasurement. For the nine months ended September 30, 2002 there were asforeign ~~follows:~~exchange gains of € 12.0 million ($ 14.0 million).

		Payment Due In:
(stated in thousands of Euro)	Total	2003	2004-05	2006-07	after 2007
Long Term Debt	80,434	—	—	80,434	—
Operating Leases	2,926	533	1,765	589	39
Maturity of other long term payables	3,341	262	1,048	1,048	983
Total	86,701	795	2,813	82,071	1,022

Losses on equity investee. Losses on equity investee for the nine months ended September 30, 2003 were € 0.2 million ($ 0.2 million). For the nine months ended September 30, 2002 there were losses of € 0.4 million ($ 0.5 million).

~~Critical~~Other ~~Accounting~~income ~~Policies~~(expenses), net. Other income for the nine months ended September 30, 2003 was € 0.2 million ($ 0.2 million). Other income for the nine months ended September 30, 2002 was € 0.6 million ($ 0.7million).

~~The Company~~Provision ~~maintains~~for ~~its~~income ~~accounting~~taxes. The ~~records~~provision ~~and~~for ~~publishes its statutory financial statements following Greek tax and corporate regulations and has made certain~~income ~~out-of-book~~taxes ~~memorandum~~for ~~adjustments to these records to present~~ the ~~consolidated~~nine ~~financial~~months ~~statements~~ended ~~included~~September in30, ~~this~~2003 ~~report~~was in€ ~~accordance with U~~7.S.8 ~~generally~~million ~~accepted accounting~~($ ~~principles~~9. ~~The preparation of consolidated financial statement in accordance with U~~1 million).S. For ~~generally accepted accounting principles requires management to make estimates and assumptions that effect~~ the ~~reported~~nine ~~amount~~months ~~of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during~~ended ~~the~~September ~~reporting~~30, ~~period.~~2002 ~~The Company continually evaluates~~ the ~~policies~~provision ~~and~~for ~~estimates~~income ittaxes ~~uses~~was to€ ~~prepare its consolidated financial statements~~10.6 Inmillion ~~general,~~($ ~~the estimates are based on historical experience, information from third-party professionals and various other assumptions that are believed to be reasonable under the facts and circumstances~~12. ~~Actual results may differ from those~~3 ~~estimates made by management~~million).

Net income. Net income for the nine months ended September 30, 2003 was € 13.6 million ($ 15.8 million), a decrease of € 6.7 million ($ 7.8 million), or 33.0%, from € 20.3 million ($ 23.6 million), for the nine months ended September 30, 2002.

~~The Company~~Three ~~believes~~months ~~that~~ended ofSeptember ~~its~~30, ~~accounting~~2003 ~~policies~~compared ~~the~~to ~~following~~three months ~~may~~ended ~~involve~~September a30, ~~higher degree of judgment and complexity:~~ 2002

~~Concentration~~Net ofsales. ~~Credit~~Net sales ~~Risk and Allowance~~ for ~~Doubtful~~the ~~Accounts: Financial~~three ~~assets~~months ~~that~~ended ~~potentially subject~~September us30, to2003 ~~concentrations~~were of€ ~~credit~~93.5 ~~risk~~million ~~are trade accounts receivable~~($ 108.9 ~~Due~~million), toan ~~the~~increase ~~large volume and diversity~~ of ~~our customer base, concentrations of credit risk with respect to trade accounts~~€ ~~receivable are limited~~1.6 Atmillion ~~each~~($ ~~reporting~~1.9 ~~period~~million), ~~all~~or ~~accounts receivable are assessed on historical trends~~1.7%, ~~statistical~~from ~~information~~€ ~~and~~91.9 ~~future~~million ~~expectations~~($ ~~and~~107.1 million) ~~a provision is recorded~~ for the ~~probable~~ ~~and~~three ~~reasonably~~months ~~estimable~~ended ~~loss~~September ~~for~~30, ~~these accounts~~2002. The ~~balance~~increase ofwas ~~such~~attributable ~~allowance for doubtful accounts is adjusted by recording a charge~~ to the ~~consolidated~~factors discussed ~~statement~~above ofunder ~~income for the reporting period~~“General”.

~~Property,~~Gross ~~Plant~~profit. Gross ~~and~~profit ~~Equipment: Property,~~for ~~plant~~the ~~and~~three ~~equipment~~months ~~are~~ended September ~~stated at cost~~30, ~~net~~2003 ofwas ~~subsidies provided~~€ by35.5 ~~the~~million ~~Greek~~($ ~~State~~41.4 million), ~~plus~~an ~~interest~~increase ~~costs~~of ~~incurred~~€ ~~during~~1.4 ~~periods~~million of($ ~~construction~~1.6 ~~based~~million), ~~upon~~or ~~the~~4.1%, ~~weighted~~from ~~average~~€ 34.1 ~~borrowing~~million ~~rate~~($ 39.7 ~~Repairs~~million) ~~and~~for ~~maintenance~~the ~~are~~three ~~expensed~~months asended ~~incurred~~September 30, 2002. This ~~The~~improvement ~~cost~~is ~~and~~attributable ~~related~~to ~~accumulated~~the ~~depreciation~~increase ofin ~~assets~~net ~~retired~~sales. Gross profit oras ~~sold~~a ~~are~~percentage ~~removed~~of ~~from~~net ~~the~~sales ~~accounts~~for at the ~~time~~three ofmonths ~~sale~~ended orSeptember ~~retirement~~30, 2003 ~~and~~increased ~~any~~to ~~gain~~37.9% orfrom ~~loss~~37.1% isfor ~~included in~~ the ~~accompanying~~comparable ~~consolidated~~period ~~statements~~ of ~~income~~2002. Cost ~~For~~of ~~statutory~~sales ~~reporting~~for ~~purposes,~~ the ~~Company~~three ~~was~~months ~~obliged~~ended September to30, ~~revalue~~2003 ~~its~~was ~~property,~~€ ~~plant~~58.0 ~~and~~million ~~equipment~~($ at67.6 ~~various~~million), ~~dates~~an ~~following~~increase ~~the~~of ~~provisions~~€ of0.2 million ~~the~~($ ~~respective~~0.2 ~~mandatory~~million) ~~tax~~or ~~laws~~0.3% ~~These revaluations~~from ~~have~~€ ~~been~~57.8 ~~reversed~~million in($ 67.3 million) for the three ~~accompanying~~months ~~consolidated~~ended ~~financial~~September ~~statements~~30, ~~after~~2002. ~~giving~~Cost ~~effect~~of tosales ~~the~~as ~~related~~a ~~deferred~~percentage ~~income~~of ~~taxes.~~net sales ~~The~~decreased ~~reversal~~from of62.9% for the ~~net~~three ~~revaluation~~months ~~gains~~ended isSeptember ~~reflected~~30, 2002 to as62.1% afor ~~separate~~the ~~component~~three ofmonths ~~shareholders'~~ended ~~equity.~~September 30, 2003.

~~Impairment~~Selling, ofgeneral ~~Long-Lived~~and ~~Assets: The U~~administrative expenses.S. Selling, general ~~Financial~~and ~~Accounting~~administrative ~~Standards~~expenses ~~Board~~(‘‘SG ~~issued SFAS~~& ~~No. 144~~A’’) ~~"Accounting~~ for the ~~Impairment~~three ormonths ~~Disposal~~ended September ~~of Long-Lived Assets"~~30, ~~which~~2003 ~~addresses~~were ~~financial~~€ ~~accounting~~28.5 ~~and~~million ~~reporting~~($ ~~for~~33.2 ~~the~~million), ~~impairment~~an orincrease ~~disposal~~ of ~~long~~€ ~~lived assets~~4.9 million ~~The~~($ ~~Company~~5.7 ~~adopted~~million), ~~SFAS~~or No20. ~~144~~8%, asfrom of€ ~~January 1,~~23.6 ~~2002,~~million ~~without~~($ ~~any~~27.5 ~~effect~~million) onfor the respective ~~Company's~~period ~~financial position and results~~ of ~~operations~~2002. ~~The~~SG ~~standard~~& ~~requires~~A ~~that long-lived~~as ~~assets~~a ~~and~~percentage ~~certain~~of ~~identifiable~~net ~~intangibles~~sales ~~held~~increased from ~~and~~25.6% ~~used~~for orthe ~~disposed~~three ofmonths byended anSeptember ~~entity~~30, be2002 ~~reviewed~~to 30.4% for ~~impairment~~the ~~whenever~~three months ~~events~~ended orSeptember ~~changes~~30, in2003, ~~circumstances~~an ~~indicate~~increase ~~that~~of ~~the carrying~~18.8%. ~~amount~~This ofincrease ~~the~~was ~~assets~~partly due ~~may~~to ~~not~~promotion beand ~~recoverable.~~other Anexpenses ~~impairment~~in ~~loss~~connection ~~for~~with anFage’s ~~asset~~sponsorship concerning ~~held~~the ~~for~~2004 ~~use~~Athens isOlympic ~~recognized~~Games, ~~when~~partly ~~the~~due ~~estimate~~to ofadvertising ~~undiscounted~~expenses ~~future~~to support ~~cash~~the ~~flows,~~new ~~excluding~~brand ~~interest~~name ~~charges,~~GALA ~~expected~~10 tolaunch and bepartly ~~generated~~due byto ~~the~~increased ~~use~~compensation of ~~the~~certain ~~asset~~members isof ~~less~~the ~~than~~Filippou family ~~its~~employed ~~carrying~~by ~~amount~~the Company. ~~Measurement~~The ofCompany believes the ~~impairment~~amounts ~~loss~~paid isto members ~~based~~of on the ~~fair~~family ~~value~~are ofappropriate consideration for the ~~asset.~~services provided.

~~Goodwill: Goodwill~~Income isfrom ~~the~~operations. Income ~~excess~~from ofoperations for the ~~purchase~~three ~~price~~months ~~over~~ended ~~the~~September ~~fair~~30, ~~value~~2003 ofwas ~~net~~€ ~~identifiable~~7.0 ~~assets acquired~~million in($ ~~business~~8.2 ~~combinations~~million), ~~accounted~~a decrease ~~for~~of as€ ~~a purchase~~3.5 ~~Prior~~million to($ ~~January~~ 4.1, ~~2002~~million), ~~goodwill~~or ~~was~~33.3%, ~~amortized~~from on€ a10.5 ~~straight-line~~million ~~basis over periods not exceeding 20 years.~~($ ~~Effective~~12.2 ~~with~~million) for the ~~adoption~~three ofmonths ~~SFAS~~ended ~~No. 142~~September ~~on January 1~~30, 2002,. Income ~~the~~from ~~Company~~operations isas noa ~~longer~~percentage ~~amortizing~~of net ~~goodwill,~~sales ~~and~~for isthe ~~instead~~three ~~testing~~months itended ~~for~~September ~~impairment~~30, at2003 ~~least~~decreased ~~annually~~to 7.5% ~~Impairment loss~~from is11.5% ~~recognized~~for ~~when~~ the ~~estimated~~comparable ~~expected~~period ~~future~~of ~~cash~~2002. ~~flows~~This ~~(undiscounted~~decrease ~~and~~was ~~without~~mainly ~~interest)~~due ~~are~~to ~~less than~~ the increased SG ~~carrying~~& ~~amount of the asset~~A.

~~Income~~Interest ~~taxes: Our~~expense. Interest ~~estimates~~expense offor ~~income taxes and~~ the ~~significant~~three ~~items~~months ~~giving~~ended September ~~rise~~30, to2003 ~~the~~was ~~deferred assets~~€ ~~and~~2.1million ~~liabilities~~($ ~~are~~2.4 ~~described~~million), ina ~~Fage's~~decrease ~~2002~~of ~~annual~~€ ~~report~~0.4 million (~~Form 20-F)~~$ 0.5 ~~These~~million), ~~reflect~~or ~~our~~16.0%, ~~assessment~~from of€ ~~actual~~2.5 ~~future~~million ~~taxes~~($ to2.9 bemillion) ~~paid~~for onthe three ~~items~~months ~~reflected~~ended inSeptember ~~the~~30, ~~financial~~2002. ~~statements,~~This ~~giving~~decrease ~~consideration~~is tomainly ~~both~~due ~~timing~~to ~~and~~the ~~probability~~revaluation of ~~these~~the ~~estimates.~~Euro ~~Actual~~against ~~income~~the US ~~taxes~~dollar ~~could~~for ~~vary~~the ~~from~~three ~~these~~months ~~estimates~~ended ~~due~~September to30, ~~future~~2003 ~~changes~~compared into ~~income tax law or on results from final~~the ~~review~~exchange ofrate ~~our~~for ~~tax returns by~~ the ~~competent~~comparable ~~tax~~period ~~authorities.~~of 2002.

Foreign exchange losses (gains), net. Foreign exchange gains for the three months ended September 30, 2003 were € 0.2 million ($ 0.2 million) mainly due to the ~~ITEM~~Senior ~~3—QUANTITATIVE~~Notes ~~AND~~quarter ~~QUALITATIVE~~end ~~DISCLOSURES~~remeasurement. For ~~ABOUT~~the ~~MARKET~~three ~~RISK~~ months ended September 30, 2002 there were foreign exchange losses of € 0.1 million ($ 0.1 million).

~~Inflation~~ Gains (losses) on equity investee. Losses on equity investee for the three months ended September 30, 2003 were € 0.1 million ($ 0.1 million). For the three months ended September 30, 2002 there were losses of € 0.1 million ($ 0.1 million).

Although the Greek economy has long been subject to both high levels of inflation and the effects of the Greek government's measures to curb inflation such as high real interest rates, the Company does not believe inflation has had a material effect on its results of operations for the periods 17

21Other income (expenses), net. Other income for the three months ended September 30, 2003 was € 0.4 million ($ 0.5 million). Other income for the three months ended September 30, 2002 was € 0.04 million ($ 0.05 million).

~~presented~~Provision for income taxes. The provision for income ~~Greece~~taxes ~~experienced~~for ~~inflation~~the ~~rates~~three ofmonths ~~3.6%~~ended ~~and~~September ~~3.8%~~30, ~~for~~2003 ~~the~~was ~~year~~€ ~~2002~~0.7 ~~and~~million ~~for~~($ 0.8 million). For the ~~six~~three months ended September ~~June~~ 30, ~~2003,~~2002 ~~respectively~~the provision for income taxes was € 0.8 million

~~Foreign~~($ ~~Exchange~~0.9 ~~Rate Fluctuation~~ million).

~~Substantially~~Net ~~all~~income. Net ofincome for the ~~Company's~~three ~~operations~~months ~~are~~ended September ~~conducted in Greece and~~30, as2003 awas ~~result,~~€ ~~the~~4.8 ~~Company's~~million ~~operating~~($ ~~results depend on the prevailing economic conditions in Greece~~5.6 ~~Furthermore~~million), ~~substantially~~a ~~all~~decrease of ~~the~~€ ~~Company's~~2.2 million ~~revenues~~($ ~~since~~2.6 ~~January 1~~million), ~~2002~~or ~~are in euros~~31.4%, ~~The~~from ~~Senior~~€ ~~Notes~~7.0 ~~are~~million ~~denominated~~($ in8.2 ~~dollars~~million), ~~and~~for ~~will require~~ the ~~Company to~~ ~~make~~three ~~all~~months ~~principal~~ended ~~and~~September ~~interest payments thereon in dollars. As a result~~30, ~~the Company may be subject to significant foreign exchange risks~~2002.

~~The Company's~~Liquidity ~~functional currency is the euro. At each balance sheet date, all monetary assets~~ and ~~liabilities~~Capital denominated in other currencies, including the Senior Notes, are adjusted to reflect the then current exchange rate. The resulting decrease or increase is reflected on the Company's income statement as foreign exchange loss or gain. Resources

The Company has historically funded its operations, capital expenditures and working capital requirements through a combination of cash flows from ~~ITEM~~operations, ~~4—CONTROLS~~short-term ~~AND~~borrowings, ~~PROCEDURES~~ long-term debt and capital lease obligations.

AnCash flows ~~evaluation~~from ofoperations ~~the~~can ~~effectiveness~~be ofimpacted ~~the~~by ~~design and operation of~~ the Company'’s ~~disclosure~~extension ~~controls and procedures as~~ of ~~June 30,~~credit ~~2003 was carried out by~~and the ~~Company~~terms ~~under the supervision~~ and ~~with~~collection ~~the~~of ~~participation~~its ofreceivables. ~~the~~The Company's ~~management,~~has ~~including~~established criteria ~~the~~for ~~Chief~~granting ~~Executive~~credit ~~Officer~~to ~~and~~customers, ~~Chief~~which ~~Financial~~are ~~Officer.~~generally ~~Based~~based onupon ~~that evaluation~~ the ~~Chief~~ ~~Executive~~size ~~Officer~~of ~~and Chief Financial Officer concluded that~~ the ~~Company'~~customer’s ~~disclosure~~operations ~~controls~~ and ~~procedures~~consideration ~~have~~of ~~been~~relevant ~~designed~~financial data. Business tois ~~provide,~~generally ~~and are effective in providing, reasonable assurance that~~conducted ~~the~~with ~~information~~such ~~required~~customers tounder benormal ~~disclosed~~terms bywith ~~the~~collection ~~Company~~expected inwithin ~~reports~~sixty (60) ~~filed~~days ~~under~~after ~~the~~shipment. At ~~Securities~~each reporting ~~Exchange~~period ~~Act of 1934 is recorded~~date, ~~processed,~~all ~~summarized~~potentially ~~and~~uncollectible ~~reported~~accounts ~~within~~are ~~the~~assessed individually ~~time~~for ~~periods~~purposes ~~specified~~of in determining the ~~SEC's~~appropriate ~~rules~~allowance ~~and~~for ~~forms~~doubtful accounts. It Ais ~~controls~~the ~~system,~~Company’s nopolicy ~~matter~~to attach ~~how~~liens ~~well~~against ~~designed~~the ~~and~~property ~~operated,~~of ~~cannot~~most ~~provide~~of ~~absolute~~its ~~assurance~~delinquent ~~that~~customers. Because ~~the objectives~~ of the ~~controls~~prolonged ~~system are met,~~ and nocomplex ~~evaluation of~~legal ~~controls~~procedures ~~can~~in ~~provide~~Greece, ~~absolute~~it ~~assurance~~is ~~that~~not ~~all~~unusual ~~control~~for ~~issues~~the ~~and~~collection ~~instances~~process ofto ~~fraud,~~take three ifto ~~any,~~five ~~within~~years before a ~~company~~case ~~have~~is ~~been detected~~finalized. Notwithstanding ~~Subsequent~~this, to the ~~date~~Company ofdoes ~~the~~not ~~most~~consider ~~recent~~its ~~evaluation of the~~accounts ~~Company's~~receivable ~~internal~~collection ~~controls,~~process ~~there~~to ~~were~~be nodelayed. Rather, ~~significant~~the ~~changes~~Company inbelieves ~~the~~its ~~Company's~~cash ~~internal~~management ~~controls~~policies orare effective in ~~other~~ensuring ~~factors~~ that ~~could~~the ~~significantly~~turnover ~~affect~~of ~~the~~its ~~internal~~accounts ~~controls,~~receivable ~~including~~and ~~any~~accounts ~~corrective~~payable ~~actions~~are ~~with~~properly ~~regard~~balanced towithin ~~significant~~general ~~deficiencies~~business ~~and~~practices ~~material~~in ~~weaknesses~~Greece.

Operating Activities. Net cash used in operating activities for the nine months ended September 30, 2003 was € 2.4 million ($ 2.8 million), a decrease of € 22.7 million ($ 26.4 million) compared to net cash from operating activities of € 20.3 million ($ 23.6 million) for the nine months ended September 30, 2002, which mainly is due to a decrease in earnings and change in working capital.

Investing Activities. Net cash used in investing activities for the nine months ended September 30, 2003 was € 15.0 million ($ ~~PART~~17.5 II million), an increase of € 22.2 million ($ 25.9 million), from € 7.2 million ($ 8.4 million) net cash from investing activities for the nine months ended September 30, 2002. Capital expenditures of € 15.4 ($ 17.9 million) were made in continued investments in Company’s facilities in order to further realize operating efficiencies.

Financing Activities. Net cash from financing ~~ITEM~~activities ~~1—LEGAL~~for ~~PROCEEDINGS~~ the nine months ended September 30, 2003 was € 15.8 million ($ 18.4 million) compared to net cash used in financing activities of € 20.2 million ($ 23.5 million) for the comparable period of 2002, mainly as a result of the short-term loan increase in 2003 of € 15.8 million ($ 18.4 million).

NoSources ~~material~~of ~~changes~~Capital. ~~have~~The Company ~~emerged~~funds ~~with~~its ~~respect~~operating tocosts ~~the~~through ~~legal~~cash ~~proceedings~~from inoperations ~~which the Company is involved~~ and ~~which~~short-term borrowings ~~are~~under ~~incidental~~various tolines ~~the conduct~~ of ~~its~~credit ~~business. The~~maintained ~~Company~~at ~~does~~several ~~not~~banks. ~~believe~~At September ~~that~~30, ~~the~~2003, ~~outcome~~approximately of€ ~~any~~16.9 ofmillion ~~these~~($ ~~legal~~19.7 ~~proceedings~~million) ~~will have a material adverse effect on the business~~was available, ~~financial~~see ~~condition~~“Note or11 ~~prospects~~Short-Term ~~of the Company~~Borrowings”.

Contractual ~~ITEM 2—CHANGES IN SECURITIES AND USE OF PROCEEDS~~ Obligations.

~~None~~Contractual obligations as September 30, 2003, were as follows:

(stated in ~~ITEM~~thousands ~~3—DEFAULTS~~of ~~UPON SENIOR SECURITIES~~ Euro)

None

		Payment Due In:
	Total	2003	2004-05	2006-07	Αfter 2007
Long Term Debt	78,959	—	—	78,959	—
Operating Leases	2,635	260	1,742	594	39
Maturity of other long term payables	3,276	197	1,048	1,048	983
Total	84,870	457	2,790	80,601	1,022

~~ITEM 4—SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS~~ 18

~~None~~Critical Accounting Policies.

The Company maintains its accounting records and publishes its statutory financial ~~ITEM~~statements ~~5—OTHER~~following ~~INFORMATION~~ Greek tax and corporate regulations and has made certain out-of-book memorandum adjustments to these records to present the consolidated financial statements included in this report in accordance with U.S. generally accepted accounting principles. The preparation of consolidated financial statement in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Company continually evaluates the policies and estimates it uses to prepare its consolidated financial statements. In general, the estimates are based on historical experience, information from third-party professionals and various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results may differ from those estimates made by management.

~~None~~The Company believes that of its accounting policies the following may involve a higher degree of judgment and complexity:

Concentration of Credit Risk and Allowance for Doubtful Accounts: Financial assets ~~ITEM~~that ~~6—EXHIBITS~~potentially ~~AND~~subject ~~REPORTS~~the ONCompany ~~FORM~~to ~~8-K~~ concentrations of credit risk are trade accounts receivable. Due to the large volume and diversity of the customer base, concentrations of credit risk with respect to trade accounts receivable are limited. At each reporting period, all accounts receivable are assessed on historical trends, statistical information and future expectations and a provision is recorded for the probable and reasonably estimable loss for these accounts. The balance of such allowance for doubtful accounts is adjusted by recording a charge to the consolidated statement of income for the reporting period.

~~None~~Property, Plant and Equipment: Property, plant and equipment are stated at cost, net of subsidies provided by the Greek State, plus interest costs incurred during periods of construction based upon the weighted average borrowing rate. Repairs and maintenance are expensed as incurred. The cost and related accumulated depreciation of assets retired or sold are removed from the accounts at the time of sale or retirement, and any gain or loss is included in the accompanying consolidated statements of income. For statutory reporting purposes, the Company was obliged to revalue its property, plant and equipment at various dates following the provisions of the respective mandatory tax laws. These revaluations have been reversed in the accompanying consolidated financial statements, after giving effect to the related deferred income taxes. The reversal of the net revaluation gains is reflected as a separate component of shareholders’ equity.

23Impairment of Long-Lived Assets: The U.S. Financial Accounting Standards Board issued SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets”, which addresses financial accounting and reporting for the impairment or disposal of long lived assets. The Company adopted SFAS No. 144 as of January 1, 2002, without any effect on the Company’s financial position and results of operations. The standard requires that long-lived assets and certain identifiable intangibles held and used or disposed of by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss for an asset held for use is recognized, when the estimate of undiscounted future cash flows, excluding interest charges, expected to be generated by the use of the asset is less than its carrying amount. Measurement of the impairment loss is based on the fair value of the asset.

Goodwill: Goodwill is the excess of the purchase price over the fair value of net identifiable assets acquired in business ~~SIGNATURES~~ combinations accounted for as a purchase. Prior to January 1, 2002, goodwill was amortized on a straight-line basis over periods not exceeding 20 years. Effective with the adoption of SFAS No. 142 on January 1, 2002, the Company is no longer amortizing goodwill, and is instead testing it for impairment at least annually. Impairment loss is recognized when the estimated expected future cash flows (undiscounted and without interest) are less than the carrying amount of the asset.

~~Pursuant~~Income totaxes: ~~the~~The ~~requirements~~Company’s estimates of ~~the~~income ~~Securities~~taxes ~~Exchange~~and ~~Act~~the significant ofitems ~~1934,~~giving rise to the ~~Registrant~~deferred ~~has~~assets ~~duly~~and ~~caused~~liabilities ~~this~~are described in Fage’s 2002 annual report (Form 20-F). These reflect the assessment of actual future taxes to be ~~signed~~paid on ~~its~~items ~~behalf~~reflected byin the financial ~~undersigned~~statements, giving consideration to both timing and probability of ~~thereunto~~these ~~duly~~estimates. ~~authorized,~~Actual income taxes could vary from these estimates due to future changes in ~~Athens,~~income ~~Greece.~~tax law or on results from final review of our tax returns by the competent tax authorities.

	FAGE DAIRY INDUSTRY S.A.
Date: August 8, 2003	By:	/s/ KYRIAKOS FILIPPOU Chairman of the Board
Date: August 8, 2003	By:	/s/ IOANNIS FILIPPOU Chief Executive Officer and Director
Date: August 8, 2003	By:	/s/ CHRISTOS KOLOVENTZOS Chief Financial Officer

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

24Inflation

~~QuickLinks~~Although the Greek economy has long been subject to both high levels of inflation and the effects of the Greek government’s measures to curb inflation such as high real interest rates, the Company does not believe inflation has had a material effect on its results of operations for the periods presented. Greece experienced inflation rates of 3.6% and 3.8% for the year 2002 and for the nine months ended September 30, 2003, respectively.

Foreign Exchange Rate Fluctuation

Substantially all of the Company’s operations are conducted in Greece and, as a result, the Company’s operating results depend on the prevailing economic conditions in Greece. Furthermore, substantially all of the Company’s revenues since January 1, 2002 are in euros. The Senior Notes are denominated in dollars and will require the Company to make all principal and interest payments thereon in dollars. As a result, the Company may be subject to significant foreign exchange risks.

The Company’s functional currency is the euro. At each balance sheet date, all monetary assets and liabilities denominated in other currencies, including the Senior Notes, are adjusted to reflect the then current exchange rate. The resulting decrease or increase is reflected on the Company’s income statement as foreign exchange loss or gain.

ITEM 4 – CONTROLS AND PROCEDURES

An evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of September 30, 2003 was carried out by the Company under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures have been designed to provide, and are effective in providing, reasonable assurance that the information required to be disclosed by the Company in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. A controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Subsequent to the date of the most recent evaluation of the Company’s internal controls, there were no significant changes in the Company’s internal controls or in other factors that could significantly affect the internal controls, including any corrective actions with regard to significant deficiencies and material weaknesses.

PART II

ITEM 1 - LEGAL PROCEEDINGS

No material changes have emerged with respect to the legal proceedings in which the Company is involved and which are incidental to the conduct of its business. The Company does not believe that the outcome of any of these legal proceedings will have a material adverse effect on the business, financial condition or prospects of the Company.

ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS

None

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS

None

ITEM 5 - OTHER INFORMATION

None

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

None

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in Athens, Greece.

	FAGE DAIRY INDUSTRY S.A.

Date: November 14, 2003		By:	/s/	Kyriakos Filippou
				Chairman of the Board

Date: November 14, 2003		By:	/s/	Ioannis Filippou
				Chief Executive Officer and Director

Date: November 14, 2003		By:	/s/	Christos Koloventzos
				Chief Financial Officer

Filing Compare · FAGE DAIRY INDUSTRY SA